General capital assets are accounted for differently in fund and government-wide financial statements. A city engaged in the following transactions during a year.

a. It acquired computer equipment at a cost of $40,000.

b. It completed construction of a new jail, incurring $245,000 in new costs. In the previous year, the city had incurred $2.5 million in construction costs. The project was accounted for in a capital projects fund.

c. It sold for $16,000 land that it had acquired three years earlier for $28,000.

1. Prepare journal entries to reflect the transactions in an appropriate governmental fund (e.g., a general fund or a capital projects fund).

2. Prepare journal entries to reflect the transactions in the city’s government-wide statements.