The City of Westcomm had the following transactions during the current calendar year. The transactions relate to financing and constructing a new firehouse. Westcomm uses budgetary accounting in its Capital Projects Fund. Prepare journal entries to record all the transactions, and identify the balance for Westcomm's Capital Projects Fund for the year ended December 31 of the current year. fund(s) used. Also, prepare a statement of revenues, expenditures, and changes in fund 1. Westcomm adopted a budget for the Capital Projects Fund on January 1, based on th assumptions: Bonds would be issued for $2,000,000. Westcomm would transfer $300,000 from its General Fund, and the state would contribute $200,000. Contracts would be awarded for $2,500,000 million. 2. On February 1, Westcomm issued $2,000,000 of S percent general obligation bonds to build a new firehouse. Principal and interest payments are to be made each February 1 and August 1 for 20 years, starting August 1 of the current year. Principal is amortized in equal semiannual payments of $50,000. The bonds were sold for $2,030,000. On February 1, Westcomm contracted with Howard Consultants for $100,000 to supervise construction. On February 1, the Capital Projects Fund invested $1,000,000 in a CD. 3. 4. 5. On February 1, Westcomm entered into a contract with Eddie Construction to build the 6. The CD matured on June 1. Westcomm recorded the check for $1,010,00o, which included 7. Westcomm transferred $300,000 from its General Fund to the Capital Projects Fund to help pay 8. Eddie Construction completed work on June 30. It billed Westcomm $2,400,000. Westcomm firehouse for $2,400,000. $10,000 of interest, in the Capital Projects Fund. for construction of the firehouse. paid the bill less 10 percent retainage, pending final inspection of Eddie's work by Howard Eddie Construction completed work on June 30. It billed Westcomm $2,400,000. Westcomm paid the bill less 10 percent retainage, pending final inspection of Eddie's work by Howard Consultants On July 10, Howard Consultants advised westcomm that Eddie had completed all work to its satisfaction. Westcomm advised the state that work on the firehouse was completed. The state promptly wired its contribution of $200,000 to Westcomm 8. 9. 10. On July 15, Westcomm paid the retainage to Eddie and also paid Howard the full $100.0oo due on its contract. 11. On July 20, all cash remaining in the Capital Projects Fund wastransferred to the Debt Service 12. On july 31, the General Fund transferred 1o the Debt Service Fund the balance needed to pay 13. On August 1, the Debt Service Fund paid the first installment of debt scon the bos issued Fund to help defray the principal and interest payment due in August the August instaliment of debt service to build the firehouse