The citizens of Spencer County approved the issuance of $$2,000,000$ in $6$ percent general obligation bonds to finance the construction of a courthouse annex. A capital projects fund was established for that purpose. The preclosing trial balance of the courthouse annex capital project fund follows:

Trial Balance$$December $31,2020$ Debits Credits

Cash $ $400,000$

Contract payable $ $250,000$

Due from state government $75,000$

Encumbrances $120,000$

Expenditures$$capital $2,160,000$

Intergovernmental grant $385,000$

OFS: premium on bonds $25,000$

OFS: proceeds sale of bonds $2,000,000$

Budgetary fund balance$$Reserve for encumbrances $120,000$

OFU: Transfer out $25,000$

$ $2,780,000$ $ $2,780,000$

Required:

a$.$ Prepare any closing entries necessary at year$-$end.

b$.$ Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the courthouse annex capital project fund.

c$.$ Prepare a Balance Sheet for the courthouse annex capital project fund, assuming all unexpended resources are restricted to construction of the courthouse annex.