Transaction	Fund / Governmental Activties	General Journal	Debit	Credit
1. The county issued $6,700,000 of 6 percent bonds, with interest payable semiannually on January 1 and July 1. The bonds sold for 101 on February 1. Proceeds from the bonds were to be used for construction of the library, with all interest and premiums received to be used to service the debt issue. Assume the premium and interest are recorded directly in the debt service fund.
1	Capital Projects Fund	Cash	6,700,000
		Other Financing SourcesProceeds of Bonds		6,700,000
	Governmental Activities	Cash	6,800,500
		Bonds Payable
		Premium on Bonds Payable		67,000
		Accrued Interest Payable (or ExpensesInterest on Bonds)		33,500
2. A $720,000 federal grant was received to help finance construction of the library.
2	Capital Projects Fund	Cash	720,000
		Revenues		720,000
	Governmental Activities	Cash	720,000
		Program RevenuesCulture and RecreationCapital Grants and Contributions		720,000
3. The Library Special Revenue Fund transferred $320,000 for use in construction of the library.
3	Capital Projects Fund	Cash	320,000
		Other Financing SourcesInterfund Transfers In		320,000
	Governmental Activities	No Journal Entry Required
4. A construction contract was awarded in the amount of $6,870,000.
4	Capital Projects Fund	Encumbrances	6,870,000
		Encumbrances Outstanding		6,870,000
	Governmental Activities	No Journal Entry Required
5. The library was completed four months ahead of schedule. Total construction expenditures for the library amounted to $7,726,500. When the project was completed, the cost of the library was allocated as follows: $235,000 to land, $6,330,000 to building, and the remainder to equipment.
5a	Capital Projects Fund	Record the completion of construction of the library.
5b		Record the payment upon completion of capital project.
5c	Governmental Activities	Record the completion of construction of the library.
5d		Record the capitalization of each item.
6. The capital projects fund temporary accounts were closed to Fund BalanceRestricted. The resources are restricted because they were obtained from bonded debt issued exclusively for library construction. The capital projects fund was closed by transferring remaining funds to the debt service fund for use in library construction debt repayment.
6a	Capital Projects Fund	Close the temporary accounts to Fund BalanceRestricted.
		Other Financing SourcesProceeds of Bonds
		Other Financing SourcesInterfund Transfers In
		Revenues
		Construction Expenditures
		Fund BalanceRestricted
6b		Record the transfer to the debt service fund.
		Other Financing UsesInterfund Transfers Out
		Cash
6c		Close the remaining temporary account to Fund Balance-Restricted.
		Fund BalanceRestricted
		Other Financing UsesInterfund Transfers Out
6d	Governmental Activities	No Journal Entry Required