REQUIRED: Prepare journal entries for the following related transactions only in the Capital Projects Fund

1. A capital projects fund issued $15,000,000, 3% bonds at par value to finance improvements to City Hall

2. The City Improvement Special Revenue Fund transferred $750,000 to the capital projects fund for use in construction.

3. A construction contract was awarded and signed in the amount of $15,200,000.

4. A bill was received from the contractor for $8,400,000 and approved for payment.

5. The contractors bill was paid. A five percent (5%) retainage is withheld.