The citizens of Spencer County approved the issuance of $2,000,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex. A capital projects fund was established for that purpose. The preclosing trial balance of the courthouse annex capital project fund follows:

a. Prepare any closing entries necessary at year-end.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the courthouse annex capital project fund.
c. Prepare a balance sheet for the Courthouse Annex Capital Project Fund, assuming all unexpended resources are restricted to construction of the courthouseannex.

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Trial Balance-December 31, 2012 Debits Credits Cash Contract payable Due from state government Encumbrances Expenditures capital Intergovernmental grant OFS: premium on bonds OFS: proceeds sale of bonds Budgetary fund balance $1,265,000 550,000 200,000 750,000 1485,000 400,000 35,000 2,000,000 750,000 Reserve for encumbrances Transfer out 35,000 $3,735,000 53,735,000