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

On February 1, 2014, the County of Birmingham sold bonds at face value in the amount of $5,000,000 to finance the construction of a new library. Due to favorable interest rates, the bonds sold at a premium of $100,000.

On February 10, 2014, Hills County entered into a contract with a private contractor to construct a new library building in the amount of $5,000,000.

On 4/1/14, when the contract was half completed, the contractor submitted an invoice for $3,000,00

Invoice was paid on 5/15/14 less Hills' standard 10% retainer to ensure deficiencies in construction were corrected.

On May 1, 2014, the $100,000 premium was transferred to the Debt Service Fund