The state government established a capital project fund in 2019 to build new highways. The fund is supported by a 5 percent tax on diesel fuel sales in the state. The tax is collected by private gas stations and remitted in the following month to the State. The following transactions occurred during 2020: Capital Project Fund Trial Balance: December 31, 2019 Debits Credits $8,550,000 2,700,000 Cash Taxes Receivable Contracts Payable Fund Balance $1,950,000 9,300,000 1. $2,100,000 of encumbrances outstanding at December 31, 2019, were re-established. 2. During the year, fuel taxes were remitted to the State totaling $23,600,000, including the amount due at the end of the previous year. In addition, $2,870,000 is expected to be remitted in January of next year for fuel sales in December 2020. 3. The State awarded new contracts for road construction totaling $23,650,000. 4. During the year, contractors submitted invoices for payment totaling $23.970,000. These were all under the terms of contracts (i.e., same $ amounts) issued by the State. 5. The State made payments on outstanding accounts of $23,375,000. The state government operates a debt service fund to service outstanding general obligation bonds. The following transactions occurred during 2020: Debt Service Fund Trial Balance: December 31, 2019 Credits Debits $210,000 Cash Fund Balance $210,000 6. The state General Fund provided cash of $4,850,000 through transfer to the debt service fund. 7. Payments for matured interest totaled $2,985,000 and payments for matured principal totaled $1,850,000 during the year. 8. In December, the State refunded bonds to obtain a better interest rate. New bonds were issued providing proceeds of $25,000,000, which was immediately used to retire outstanding bonds in the same amount Required: Page 144 Use the Excel template provided. A separate tab is provided in Excel for each of the requirements: a. Prepare journal entries recording the events 1 to 8 (above) for the capital projects and debt service funds. b. Post the journal entries to T-accounts. c. Prepare closing entries. d. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the Governmental Funds (the General Fund and special revenue fund financial statements have already been prepared). e. Prepare a Balance Sheet for the Governmental Funds assuming all unexpended spendable net resources in the capital projects fund are classified as restricted and in the debt service fund are classified as assigned Special Revenue Fund Total Capital Debt Service Governmental Projects Fund Fund Funds General Fund S $ $ 63,500,000 $ 5,680,000 $ 63,500,000 5,680,000 Revenues Income taxes Intergovermental revenues Fuel taxes License Fees Fines Total Revenues areas shaded in blue are not a a requirement of this exercise but are assumed to provide a complete financial statement 1,162.000 255,000 1,417,000 1,162,000 255,000 70,597,000 69,180,000 27,890,000 27,200,000 8,770,000 Expenditures Current: General Government Operations Public Safety Tourism Wildlife Management Capital Outlay Debt Service Principal Interest Total Expenditures 27,890,000 27,200,000 8.770.000 1,293,300 305,000 1,293,300 305,000 63.860,000 1,598,300 65,458,300 Excess (Deficiency) of Revenues Over Expendit 5,320,000 (181,300) 5,138,700 Other financing sources (uses) Bond Refunding - proceeds Bond Refunding - payment Transfers in Transfers out total other financing sources (uses) 300.000 (5.100.000) (5,100,000) 300,000 (5.100,000) (4,800,000) 300,000 Net Change in Fund Balance Fund Balance, January 1 Fund Balance, December 31 220,000 118,700 2,350,000 252,000 S 2,570,000 S 370,700 S 338,700 2,602,000 2,940,700 S S