When governments undertake capital projects and borrow money to accomplish them, they may encounter other aspects of the building and funding process which require special accounting. Examples of this include bond premium or discount, interest expenditures, and special assessments. The Wickliffe City Council authorizes the restoration of the city library. The project is to be funded by the issuance of bonds, a reimbursement grant from the state and property taxes. Prepare journal entries in the capital projects fund to reflect the following events and transactions: A. The city approves (and gives accounting recognition to) the projects budget of $9,027,000, of which $6 million is to be funded by the general obligation bonds, $2.5 million from the state and the remaining $527,000 from the general fund. The city estimates that construction costs will be $8,907,000 and bond issue costs $120,000. B. The city issues 9 percent, 15 year bonds that have a face value of $6 million. The bonds are sold for $6,120,000, an amount reflecting a price of $102. The city incurs $115,000 in issue costs, hence the net proceeds are $6,005,000. C. The city transfers the net premium of $5,000 to its debt service fund. D. It receives the anticipated $2.5 million from the state and transfers $527,000 from the general fund. E. It signs an agreement with a contractor for $8,890,000. F. It pays the contractor $8,890,000 upon completion of the project. G. It transfers the remaining cash to the debt service fund