EXERCISE $17-11$

Capital Projects Fund$$Journal Entries LO $4$

On June $1,2025,$ the City of Cape May authorized the construction of a police station at an expected cost of $\backslash (\backslash$$ $250,000\backslash ).$ Financing will be provided through transfers from a Special Revenue Fund. The following transactions occurred during the fiscal year beginning June $1,2025,$ relating to the Capital Project Fund.

$1.$ The $\backslash (\backslash$$ $250,000\backslash )$ receivable from the Special Revenue Fund was recorded.

$2.$ The Special Revenue Fund transferred $\backslash (\backslash$$ $125,000\backslash )$ to the Capital Project Fund to begin construction on the police station.

$3.$ The Capital Project Fund invested the transfer of monies in a six$-$month certificate, at $5\backslash \%.$

$4.$ A contract in the amount of $\backslash (\backslash$$ $250,000\backslash )$ was let to the lowest bidder.

$5.$ Architect and legal fees in the amount of $\backslash (\backslash$$ $3,125\backslash )$ were approved for payment. There was no encumbrance for these expenditures.

$6.$ Contract billings in the amount of $\backslash (\backslash$$ $250,000\backslash )$ were approved for payment on the completion of the police station and the encumbrance was removed.

$7.$ The six$-$month certificate was redeemed at maturity with interest revenue.

$8.$ The Special Revenue Fund transferred the final amount of $\backslash (\backslash$$ $125,000\backslash )$ to the Capital Projects Fund.

$9.$ All liabilities except for the retention of $\backslash (5\backslash \%\backslash )$ of the contract price were paid.

$10.$ All requirements and obligations were completed; the final payment of the contract price was made and all nominal accounts were closed.

Required:

Prepare the journal entries necessary in the Capital Projects Fund to record the transactions and events described above.