This year Riverside began work on an outdoor amphitheater and concession stand at the city's park. It is to be financed by a $3,500,000 bond issue and supplemented by a $500,000 General Fund transfer. The following transactions occurred during the current year 1. The General Fund transferred $500,000 to the Park Building Capital Projects Fund. 2. A contract was signed with Restin Construction Company for the major part of the project on a bid of $2,700,000 3. Preliminary planning and engineering costs of $69,000 were vouchered for the Great Pacific Engineering Company. (This cost had not been encumbered.) 4. A payable was recorded for an $18,500 billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the new concession stand. 5. An invoice in the amount of $1,000,000 was received from Restin for progress to date on the project. 6. The $3,500,000 bonds were issued at par. 7. The amount billed by the contractor (see Transaction 5) less 5 percent retained was paid. 8. Temporary investments were purchased at a cost of $1,800,000. 9. Closing entries were prepared as of year-end. Assume that $2,500,000 of the encumbrances outstanding will be paid from the bond proceeds and are therefore considered restricted resources. The remaining fund balance is assigned. Required a. Prepare journal entries to record the preceding Information for the Park Building Capital Projects Fund. (If no entry is required for a Debit Credit 1 Cash 500,000 Other Financing Sources-Interfund Transfers In 500,000 B 2 Encumbrances Encumbrances Outstanding 2,700,000 2,700,000 3 Construction Expenditures Vouchers Payable 69,000 69,000 D 4 Construction Expenditures Due to Other Funds 27,000 27,000 E 5 Encumbrances Outstanding Construction Expenditures Encumbrances Contracts Payable 1,000,000 1,000,000 1,000,000 1,000,000 D 4 Construction Expenditures Due to Other Funds 27,000 27,000 > >> E 5 Encumbrances Outstanding Construction Expenditures Encumbrances Contracts Payable 1,000,000 1,000,000 1,000,000 1,000,000 F 6 3,500,000 Cash Other Financing Sources-Proceeds of Bonds 3.990,000 7 1,000,000 Contracts Payable Contracts Payable-Retained Percentage Cash >> 50,000 950,000 H 8 Investments 1,800,000 Cash 1,800,000 1 9 500,000 3,500,000 Other Financing Sources-Interfund Transfers In Other Financing Sources-Proceeds of Bonds Fund Balance-Restricted Fund Balance Assigned Construction Expenditures SI 2,500,000 300,000 1,000,000 X Park Building Capital Projects Fund Balance Sheet As of Year End Assets Cash Investments $ 1,250,000 1,800,000 $ 3,050,000 Total Assets Liabilities and Fund Balances Liabilities: Vouchers Payable Due to Other Funds Contracts Payable-Retained Percentage $ 69,000 27,000 50,000 146,000 Total Liabilities Fund Balances: Fund Balance-Restricted Fund Balance-Assigned $ 2,500,000 1,000,000 Total Fund Balances 3,500,000 X Answer is complete but not entirely correct. RIVERSIDE Park Building Capital Projects Fund Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended Expenditures: Construction Expenditures $ 96,000 Other Financing Sources and Uses: Interfund Transfers In $ 0X Proceeds on Bonds Sold 3,500,000 3,500,000 Excess of Revenues and Other Sources Over Expenditures 3,404,000 Fund Balances, Beginning 2,500,000 Fund Balances, Ending $ 5,904,000