Some transactions are reported differently in fund versus government-wide statements, but others are not. The State Department of Highways engaged in the following transactions or was affected by the following events during its fiscal year ending on December 31, 2013:

a. It signed a two-year lease for office space for the period June 1, 2013, through May 31, 2015. Rent was to be $20,000 per month. Upon signing the lease, it paid one year’s rent of $240,000 in advance. It accounts for prepayments on a purchases basis.

b. In December, it settled accident-related litigation by agreeing to pay the injured party $2.5 million. The payment was to be made in June 2014.

c. In November, it announced $145 million in reimbursement grants to counties within the state. The grants are to cover road improvements to be made in the years 2014 and 2015.

d. In December, it announced a $5 million grant to a city to install computerized traffic signals. The department expects to make payment in January but did not specify the year in which the funds can be expended.

e. On July 1, it issued $10 million of 6%, 20-year bonds, receiving proceeds of $10,234,930. The bonds were sold to yield of 5.8% (2.9% per semi-annual period). On December 31, it made its first semi-annual interest payment of $300,000. Prepare journal entries to reflect how the transactions and events would be recorded for (1) governmental fund statements and (2) government-wide statements.