The voters of Salinas City authorized the construction of a new north-south expressway for a total cost of no more that $90 million. The voters also approved the issuance of $60 million of 5 percent general obligation bonds. The balance of the necessary funds will come from the following sources: $20 million from a federal grant and $10 million from general property taxes. The city controls expenditures in capital project funds through project management. The city does not formally incorporate budgetary entries in the capital projects fund but it does use encumbrance accounting for control purposes. REQUIRED: Assume that the city maintains its books and records in a manner that facilitates the preparation of the fund financial statements. Prepare journal entries in the capital projects fund, for the following transactions. The city:

(a) Issues $60 million of 5 percent general obligation bonds at 101.

(b)Transfers the premium to the appropriate fund.

(c)Incurs bid-related expenditures of $1,000.

(d)Signs a contract with the lowest competent bidder for $58 million.

(e) Receives notice from the state that the grant has been approved and the proceeds will be forwarded to the city in the state's current fiscal year.

(f)Receives the federal grant in full.

(g)Pays a progress billing from the contractor for $12 million.