During the fiscal year ended June 30, 20X3, West City Council authorized construction of a new city hall building and the sale of serial bonds to finance the construction. The following transactions related to financing and constructing the city hall occurred during fiscal 20X3:
1. On August 1, 20X2, West issued $5,000,000 of serial bonds for $5,080,000. Interest is payable annually, and the first retirement of $500,000 is due on July 31, 20X7. The premium is transferred to the debt service fund.
2. The old city hall, which had a recorded cost of $650,000, was torn down. The cost of razing the old building was $45,000, net of salvage value. This cost was included in the capital budget but was not encumbered. The cost is vouchered and paid.
3. West signed a contract with Roth Construction Company to build the city hall for $4,500,000. The contract cost is to be encumbered. Construction is to be completed during fiscal 20X4.
4. Roth Construction Company bills West $2,000,000 for construction completed during fiscal 20X3. Ten percent of the billings will be retained until final acceptance of the new city hall. The billing less the retainage had been paid during the fiscal year.

Required
a. For each of these transactions, prepare the necessary journal entries for all funds involved. Indicate the fund in which the entry is made by giving its initials in the left margin: CPF (capital projects fund) or DSF (debt service fund). Give the closing entries for the capital projects fund.
b. Prepare a balance sheet for the capital projects fund at June 30, 20X3.
c. Prepare a statement of revenues, expenditures, and changes in fund balance for the capital projects fund for the fiscal year ended June 30, 20X3.