Record the following transactions in the general journals of the City Hall Annex Construction Fund and governmental activities at the government-wide level. Do not record entries at this time in any other affected funds; those entries will be made in later chapters of this cumulative problem that cover those funds.

7. [Para. 5-a-7] Construction bids were opened and analyzed. A contract was signed with the firm that submitted the winning bid of $3,900,000. A provision of the contract permits the city to withhold 5 percent of payment pending final acceptance of the completed project.

8. [Para. 5-a-8] The $4,000,000, 90-day notes matured, paying $25,000 in interest (see para. 5-a-2). Record the sale of the investment, and related interest income (interest should be recorded as general revenue in the governmental activities journal).

9. [Para. 5-a-9] The contractor submitted a billing for $1,600,000. This amount was recorded as a contract payable (see para. 5-a-7).

10. [Para. 5-a-10] The contractors billing (see para. 5-a-9) was paid, less a 5 percent retained percentage