The citizens of Spencer County approved the issuance of $2,000,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex. A capital projects fund was established for that purpose. The preclosing trial balance of the courthouse annex capital project fund follows:

a. Prepare any closing entries necessary at year-end.

b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the courthouse annex capital project fund.

c. Prepare a Balance Sheet for the courthouse annex capital project fund, assuming all unexpended resources are restricted to construction of the courthouse annex.

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Trial Balance-December 31, 2020 Debits Credits $ 400,000 Cash Contract payable Due from state government Encumbrances Expenditures-capital Intergovernmental grant OFS: premium on bonds OFS: proceeds sale of bonds Budgetary fund balance- Reserve for encumbrances OFU: Transfer out $ 250,000 75,000 120,000 2,160,000 385,000 25,000 2,000,000 120,000 25,000 $2,780,000 $2,780,000