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 Capital General Fund Revenue Fund Projects Fund Total Debt Service Governmental Fund Funds areas shaded in blue are not a a requirement of this exercise but are assumed to provide a complete financial statement Assets Cash Investment in US securities Taxes receivable Licenses receivable Due from other governments Accrued interest receivable Supplies Inventory Total Assets $ 2,069.000 $ 307,000 2,560,000 1,077,000 58,000 137,000 700.000 220,000 36,000 6,700 S 6.720,000 S 450,700 S $ 2,376,000 2,560,000 1,077,000 195.000 700,000 220,000 42,700 S 7,170,700 $ Liabilities and Fund Balances Liabilities Accounts Payable Wages Payable Contracts payable 3,750,000 400,000 38,000 42,000 3,788,000 442,000 Total Liabilities 4,150,000 80,000 4,230,000 36,000 6.700 42,700 364,000 364,000 Fund Balances Nonspendable - supplies inventory Restricted for New highways Fish and game Assigned to: Debt service Public works Unassigned Total Fund Balances 34,000 2,500,000 2,570,000 34,000 2,500,000 2,940,700 370,700 Total Liabilities and Fund Balance S 6,720,000 $ 450,700 S S 7,170,700