West Whiteland Township uses the calendar year. It decides to extend sewer lines to a recently developed subdivision. The township estimates the cost will be $8.0 million. The project is to be funded first with the issuance of $5.0 million in special assessment bonds; second with a $2.0 million reimbursement grant from the state; and finally with a $1.0 million pledge (contribution) from ABC Construction Company to cover any additional expenses. The agreement with the state is that it will award the reimbursement grant to West Whiteland Township only after $5.0 million is spent. During 2023, West Whiteland Township engages in the following transactions, all of which are recorded in the Capital Projects Fund. 1. The township issues $5.0 million in bonds at a premium of $.40 million and incurs $.18 million in issue costs. The premium, net of issue costs, is transferred to a newly established debt service fund. 2. The township receives $2.0 million in cash from the state for the reimbursement grant in anticipation that the township will incur at least $2.0 million in construction costs. 3. The township pays $5.9 million to invest in short-term (less than one year) securities. 4. The township issues purchase orders and signs construction contracts for $7.9 million. 5. The township sells $4.0 million of its investments for $4.4 million. 6. The township receives invoices totaling $6.2 million. As permitted by its agreement with its prime contractor, the township retains $.7 million pending satisfactory completion of the project. The township pays $5.5 million. 7. The township recognizes the revenue earned from the reimbursement grant. 8. Anticipating that the project will be completed in the following year, ABC Construction Company pledges to contribute $1 million to West Whiteland Township. The township receives the contribution as follows: $700,000 in 2023; $100,000 in January, 2024; $100,000 in February, 2024; and $100,000 in March, 2024. 9. By year-end, the investments still on hand decreased in value by $.25 million. Do a. Using good form, prepare journal entries to record the transactions in 2023. b. Using good form, prepare the Statement of Revenues, Expenditures, and Changes in Fund Balance for the year ending December 31, 2023. Also, prepare the Balance Sheet at December 31, 2023. At December 31, 2022, the township's Capital Projects Fund had the following account balances in its General Ledger: Cash -- $ 4 million Investments -- $ 3 million Unreserved Fund Balance -- $ 7 million