Reference no: EM132526503

Question - X city authorized a $3,600,000 building project to be financed from three sources;

General fund transfer $600,000

Federal government grant 2,300,000

Bond issue 700,000

The project is to be constructed in part by private contractors. the fiscal year ends on July 7. The following transaction occurred in the first year ended July 7, 2002( budgetary entry is not required);

A. The sum of $400,000 was borrowed in anticipation of bond issue from commercial bank.

B. Total purchase order and other commitment issued for supplies ,materials,and items of minor equipment required for the part of the project to be performed by the town's employees amounted to $480,000.

C. Special engineering and miscellaneous costs that had been encumbered were paid in the amount of $80,000.

D. payment in full was received from general fund ,and federal government that had agreed to pay part of the cost of the building

E. The contract's initial claim was verified and paid $648,000.

F. The approved bonds were sold at par.

Required - Prepare the journal entry to record the above transactions in capital project fund?