The following transactions occurred during 2021: arena will be financed by a $82,500,000 general obligation bond issue. Investment revenue of $4,400,000 was also included in the budget. \{Assume that the budget is recorded in the accounts and encumbrance accounting is used.) 2. Watersville received $83,600,000 from the sale of bonds, which included a premium of $1,100,000 over the $82,500,000 face value. The $1,100,000 premium was transferred immediately to the appropriate Debt Service Fund. 3. The city invested $82,390,000 in securities. 4. The contract signed with V.P. stipulated that the contract price included the architect fees. The architects were paid their fee of $27,500 by Watersville. (Assume that a vouchers payable account was not used.) 5. The contractor submitted a progress billing of $3,300,000; the billing (less a 6 percent retainage) was approved. 6. Investments that cost $3,300,000 were redeemed for $3,300,000 plus $55,000 interest. 7. V. P. was paid the amount due in transaction 5 less the retainage. 8. Interest income totaling $4,070,000 was received on the investments. 9. V. P. submitted another progress billing of $8,800,000. The billing, less the retainage, was approved. 10. Investments originally costing $8,580,000 were redeemed to make the payment to V.P. Cash proceeds of $8,910,000 were received. 11. The contractor was paid the amount due in transaction 9 less the retainage. 12. Interest income of $66,000 was accrued. 13. Interest income of $11,000 was received in cash. Use the preceding information to do the following: a. Prepare the journal entries necessary to record these transactions in the Capital Projects Fund. Assume that the city operates on a calendar year. b. Prepare a trial balance for the Capital Projects Fund as of December 31, 2021, before closing. remain at completion of the project, they will be transferred to the Debt Service Fund. d. Prepare a statement of revenues, expenditures, and changes in fund balance for 2021 and a balance sheet as of December 31, 2021. e. Prepare the journal entries necessary to record the remainder of the budget and to reestablish the budgetary accounts for encumbrances on January 1, 2022. Assume that investment revenue expected to be earned in 2022 is $2,200,000. Note: Use a negative sign to indicate Excess of expenditures over revenues and Transfer out to Debt Service fund. The following transactions occurred during 2021: arena will be financed by a $82,500,000 general obligation bond issue. Investment revenue of $4,400,000 was also included in the budget. \{Assume that the budget is recorded in the accounts and encumbrance accounting is used.) 2. Watersville received $83,600,000 from the sale of bonds, which included a premium of $1,100,000 over the $82,500,000 face value. The $1,100,000 premium was transferred immediately to the appropriate Debt Service Fund. 3. The city invested $82,390,000 in securities. 4. The contract signed with V.P. stipulated that the contract price included the architect fees. The architects were paid their fee of $27,500 by Watersville. (Assume that a vouchers payable account was not used.) 5. The contractor submitted a progress billing of $3,300,000; the billing (less a 6 percent retainage) was approved. 6. Investments that cost $3,300,000 were redeemed for $3,300,000 plus $55,000 interest. 7. V. P. was paid the amount due in transaction 5 less the retainage. 8. Interest income totaling $4,070,000 was received on the investments. 9. V. P. submitted another progress billing of $8,800,000. The billing, less the retainage, was approved. 10. Investments originally costing $8,580,000 were redeemed to make the payment to V.P. Cash proceeds of $8,910,000 were received. 11. The contractor was paid the amount due in transaction 9 less the retainage. 12. Interest income of $66,000 was accrued. 13. Interest income of $11,000 was received in cash. Use the preceding information to do the following: a. Prepare the journal entries necessary to record these transactions in the Capital Projects Fund. Assume that the city operates on a calendar year. b. Prepare a trial balance for the Capital Projects Fund as of December 31, 2021, before closing. remain at completion of the project, they will be transferred to the Debt Service Fund. d. Prepare a statement of revenues, expenditures, and changes in fund balance for 2021 and a balance sheet as of December 31, 2021. e. Prepare the journal entries necessary to record the remainder of the budget and to reestablish the budgetary accounts for encumbrances on January 1, 2022. Assume that investment revenue expected to be earned in 2022 is $2,200,000. Note: Use a negative sign to indicate Excess of expenditures over revenues and Transfer out to Debt Service fund