The City of Portsmouth, VA authorized construction of a new po¬lice station on February l, 2014. The $15,000,000 project will be financed by a bond issue to be sold in March 2014. The City's fiscal year ends June 30. The following events occurred in fiscal 2014:
• February 10: The general fund advanced $100,000 to the capital projects fund to finance initial project planning.
• March 1: $80,000 was paid for initial planning.
• March 15: The bonds were issued at 101. The excess cash received was remitted to the debt service fund. The advance from the general fund was paid.
• March 20: The contract was awarded for $14,000,000.
• June 10: The contractors submitted bills for $8,000,000. The city applied its 10% retainage policy, and paid the net amount owed.
Assume all capital projects resources are restricted.
Required
a. Record all necessary entries in the capital projects fund for the above information, including closing entries.
b. Assuming this is the only project reported in the capital projects fund, prepare its statement of revenues, expenditures, and changes in fund balances and ending balance sheet for fiscal 2014.