Crystal City established a capital projects fund to account for the construction of a new bridge. During the year the fund was established, the city issued bonds, signed (and encumbered) $6 million in contracts with various suppliers and contractors, and incurred $4.3 million of construction costs. It temporarily invested a portion of the bond proceeds and earned $20,000 in interest, which was received in cash. The accompanying statement of revenues, expenditures, and changes in fund balance and balance sheet were taken from its year€end financial report. Based on the data in the two statements, as well as those provided in the previous paragraph, prepare journal entries to summarize the transactions in which the fund engaged. You should prepare budgetary entries, but need not prepare closing entries.

Crystal City, Capital Projects Fund Balance Sheet As of December 31 (in thousands)
Assets
Cash...................................................$ 5,320
Investments.............................................5,000
Total assets..........................................$10,320
Liabilities
Accounts payable (to contractors).................$ 2,600
Fund balance
Committed............................................$ 1,700
Assigned................................................6,020
Total fund balance...................................$ 7,720
Total liabilities and fund balance.................$10,320

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Crystal City, Capital Projects Fund Statement of Revenues, Expenditures, and Changes in Fund Balance-Actual and Budget Year Ended December 31 (in thousands) Budget $ 2,000 2,000 $ 2,020 2,000 Actual Revenues Cash grant from state Interest 20 Total revenues Expenditures Bond issue costs Construction costs $ 50 4,300 5,000 $ 4,350 5,000 $(2,330) (3,000) Total expenditures Excess of revenues over expenditures Other financing sources (uses) $10,000 10,000 Proceeds of bonds Proceeds of bonds (premium) Nonreciprocal cash transfer of bond premium (less issue costs) to debt 200 (150) service fund Increase in reserve for encumbrances (1,700) Total other financing sources (uses) Excess of revenues and net financing sources over expenditures $ 8,350 10,000 $ 6,020 7,000 Fund balance, beginning of year Fund balance, end of year $ 6,020 7,000