Prepare the general journal entries for the State of North Dakota to properly record each of the following transactions and events in the appropriate general ledger accounts of the appropriate funds for the year ended June 30, 2016.If no entry is required, write "No Entry Required" and briefly explain why. Budgeted Entries, including encumbrances are NOT required. The General Capital Assets and General Long-term Liability accounts are updated whenever a relevant transaction occurs. Use the following abbreviations for the funds and nonfund accounts.
1. On September 1, 2015, the state issued $132,000,000 (face amount) of 20-year bonds at a premium of $4,850,000 to finance construction of school buildings (owned by the state) across the state. Bond issue costs of $343,000 were paid from the proceeds.
2. The state signed construction contracts totaling $170,000,000.
3. The state incurred construction costs of $120,000,000 on the school buildings. These costs included the costs incurred on buildings completed during the year, $100,000,000.The remaining costs, $20,000,000 were incurred on projects still in progress at year end.
4. $11,600,000 was transferred from the General Fund to the DSF to finance one year's principal and interest for the school building bonds.
5. A computer system has been leased for the state for its logistics operations. The lease has a net present value of $2,500,000.The lease will be serviced through the General Fund.
6. The state paid general paid bond principal of $6,600,000 and $5,000,000 of bond interest during fiscal year 2016 (for bond in #1).
7. Land was purchased by the state for $150,000 (to be used for a state building accounted for in a Capital Projects Fund).The State will receive reimbursement under a Federal Grant. Payment is expected to be received in 30 days.