Prepare the journal entries required in the Capital Projects Fund for the above transactions. 10 points

On 2/1/14 Birmingham County sold bonds at par value in the amount of $5,000,000 to finance construction of a new library.Because of favorable interest rates, the bonds were sold at a $100,000 premium.

On 2/10/14 Hills County entered into a contract with a private contractor to build a new library building in the amount of $5,000,000.

On 4/1/14, when the contract was half finished, the contractor submitted a bill for $3,000,000.

The bill was paid on 5/15/14 less Hills' standard 10% retention to assure any construction deficiencies are corrected.

On 5/1/14 the $100,000 premium was transferred to the Debt Service Fund