Dawson City begins a capital projects fund during its fiscal year ended June 30, 2021. The budgetary entry is omitted. Record the following transactions in the capital projects fund (entries for any other funds are not required):

1. Bonds with a face value of $2,000,000 are sold at a 1% premium.

2. The appropriate transfer is made to the debt service fund.

3. The City signs a contract with Zachariah Contractors for $2,000,000.

4. Zachariah Contractors bills for 100% of the work for the contract described in #3. The contract provides for a 4% retainage.

5. The City pays the bill in #4 (excluding the retainage).

6. The City conducts the final inspection and pays the retainage amount to Zachariah Contractors.

Answer rating: 100% (QA)

1 No entry for Capital Project fund 2 No entry for Ca... View the full answer