Residents from the Town of Mountain View authorized a $8,000,000 renovation to their historic town hall on November 15, 2019. Financing for the projectconsists of $3,100,000 from a 4 percent serial bond issue, $2,600,000 from a state grant, and $2,300,000 from the General Fund. Debt service for the serialbonds will be provided by a one-quarter-cent city sales tax imposed on every dollar of sales in the city. The town has a calendar year-end. Required Prepare journal entries to record the related transactions in the town’s capital projects fund, debt service fund, and governmental activities at thegovernment-wide level. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required"in the first account field.) Transaction Fund General Journal Debit Credit a. Record the 2020 budget for the Serial Debt Service Fund. Sales taxes of $300,000 are expected to be collected in 2020; the only appropriation is expected to be six months of interest on the serial bond. a Debt Service fund Estimated Revenues 300,000 Budgetary Fund Balance 62,000 Appropriations 238,000 Capital Projects Fund No Journal Entry Required Governmental Activities No Journal Entry Required b. The town transfers $2,300,000 from the General Fund to a newly established capital projects fund. b Debt Service fund No Journal Entry Required Capital Projects Fund Cash 2,300,000 Other Financing Sources—Interfund Transfers In 2,300,000 Governmental Activities No Journal Entry Required c. Planning and architect’s fees for the town hall renovation are paid in the amount of $260,000. c Debt Service fund No Journal Entry Required Capital Projects Fund 260,000 260,000 Governmental Activities 260,000 260,000 d. The town hall renovation construction contract is awarded to a local contractor, Central Paving and Construction, for $6,720,000. d Debt Service fund No Journal Entry Required Capital Projects Fund Encumbrances 6,720,000 Encumbrances Outstanding 6,720,000 Governmental Activities No Journal Entry Required e. On April 1, 2020, the town issues serial bonds with a face value totaling $3,100,000 and having maturities ranging from one to 20 years at 104. The bonds bear interest of 4 percent per annum, payable semiannually on April 1 and October 1. e(1) Debt Service fund Record the issue of bonds in the Debt Service Fund Cash 124,000 Oth Fi i S P i B d P bl 124 000 Other Financing Sources—Premium on Bonds Payable 124,000 e(2) Premiums on bonds issued must be deposited directly in the debt service fund and are restricted for debt service. (Remember to amend the debt service fund budget because this premium was not anticipated.) Estimated Other Financing Sources—Premium on Bonds 124,000 Budgetary Fund Balance 124,000 e(3) Capital Projects Fund Premiums are amortized using the straight-line method over 40 interest periods. Record the issue of bonds. Cash 3,100,000 Other Financing Sources—Proceeds of Bonds 3,100,000 e(4) Governmental Activities Record the issue of bonds. Cash 3,224,000 Premium on Bonds Payable 124,000