Residents from the Town of Mountain View authorized a $7,400,000 renovation to their historic town hall on November 15, 2016. Financing for the project consists of $2,800,000 from a 5 percent serial bond issue, $2,400,000 from a state grant, and $2,200,000 from the General Fund. Debt service for the serial bonds will be provided by a one-quarter-cent city sales tax imposed on every dollar of sales in the city. The town has a calendar year-end.

Prepare journal entries to record the related transactions in the towns capital projects fund, debt service fund, and governmental activities at the government-wide level. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Transaction	Fund	General Journal	Debit	Credit
a. Record the 2017 budget for the Serial Debt Service Fund. $260,000 of sales taxes are expected to be collected in 2017; the only appropriation is expected to be six months of interest on the serial bond.
a	Debt Service fund
	Capital Projects Fund
	Governmental Activities
b. The town transfers $2,200,000 from the General Fund to a newly established capital projects fund.
b	Debt Service fund
	Capital Projects Fund
	Governmental Activities
c. Planning and architects fees for the town hall renovation are paid in the amount of $270,000.
c	Debt Service fund
	Capital Projects Fund
	Governmental Activities
d. The town hall renovation construction contract is awarded to a local contractor, Central Paving and Construction, for $6,142,000.
d	Debt Service fund
	Capital Projects Fund
	Governmental Activities
e. On April 1, 2017, the town issues serial bonds with a face value totaling $2,800,000 and having maturities ranging from one to 20 years at 104. The bonds bear interest of 5 percent per annum, payable semiannually on April 1 and October 1.
e(1)	Debt Service fund	Record the issue of bonds in the Debt Service Fund
e(2)		Premiums on bonds issued must be deposited directly in the debt service fund and are restricted for debt service. (Remember to amend the debt service fund budget, since this premium was not anticipated.)
e(3)	Capital Projects Fund	Premiums are amortized using the straight-line method over 40 interest periods. Record the issue of bonds.
e(4)	Governmental Activities	Record the issue of bonds.
f. The capital projects fund paid the citys Utility Fund $40,000 for wiring associated with the renovation. No encumbrance had been recorded for this service.
f	Debt Service fund
	Capital Projects Fund
	Governmental Activities
g. On October 1, 2017, the city mailed checks to bondholders for semiannual interest on the bonds.
g	Debt Service fund
	Capital Projects Fund
	Governmental Activities
h. Sales taxes earmarked for debt service of $260,000 were collected.
h	Debt Service fund
	Capital Projects Fund
	Governmental Activities
i. Central Paving and Construction submitted a progress billing to the town for $2,800,000. The citys public works inspector agrees that all milestones have been met for this portion of the work.
i	Debt Service fund
	Capital Projects Fund
	Governmental Activities
j. The town paid Central Paving and Construction the amount it had billed, except for 5 percent that was withheld as a retained percentage per terms of the contract.
j	Debt Service fund
	Capital Projects Fund
	Governmental Activities
k. Grant funds totaling $2,400,000 are received from the state historical society, since eligible expenditures have been made.
k	Debt Service fund
	Capital Projects Fund
	Governmental Activities
l