Prepare the journal entries for the events below for the capital projects funds.

The state government established a capital project fund in 2014 to build new highways. The fund is supported by a 5% tax on diesel fuel in the state. The tax is collected by private gas stations and remitted in the following month to the State.

Capital Project Fund Trial Balance:

12/31/2014

Cash $9,700,000

Taxes receivable 2,750,000

Contracts payable 1,850,000

Fund Balance 10,600,000

Journal Entry #4: During the year, contractors submitted invoices for payment totaling 30,700,000. These were under the terms of contracts (i.e. the same $ amounts) issued by the State.