\fProblem 1: [B] Problem 1: {(2} Note disclosure for the expenditures related to the county courthouse for 2021. Amount Problem 1: capital projects fund financial statements and other questions The Village of Pineville established a capital projects fund at the beginning of 2021 to construct a Village Hall. The estimated cost of the Village Hall was $2,824,000. Construction will be financed in the following manner: T\" Grant from the State 5 400,000 '9' Issuance of general obligation (6.0.) serial bonds 2,400,000 5\" Estimated revenue from interest on treasury bills 24,000 The following events relate to the Village Hall capital project during 2021: '9' Village trustees approved the capital budget for the Village Hall on January 5, 2021. T\" The referendum to issue $2,400,000 of general obligation bonds received voter approval in November, 2020. The bonds were issued for $2,448,000 on January 31, 2021. The Village trustees authorized the transfer of the premium to the debt service fund. The transfer was made in February, 2021. iv\" The Village received the $400,000 grant from the State on February 15, 2021. 5\" In early February, 2021, the architectural firm of Hudson and Judson was selected to draw the plans for the courthouse for a fee of 520,000. Plans were submitted in March, 2021, and the architectural firm was paid $20,000 in April, 2021. iv\" $2,000,000 of the bond proceeds were invested in shortterm U.S treasury bills in April, 2021. fa\" The Village signed a contract with Eleeson Construction for $2,236,000 in June, 2021. It was estimated that it will take 12 months to complete construction of the Village Hall. T\" In November, 2021, the Village received a bill from Gleeson Construction for $960,000. lGleeson estimated that the courthouse was 35% complete. 5\" In early December, the Village and Gleeson Construction renegotiated the remaining 65% of the contract ($1,228,400) due to inflation in the cost of building materials. The remaining portion of the contract was increased to $1,850,000. 5\" $1,200,000 of the shortterm treasury bills matured in December, 2021; interest income on the matured securities amounted to $14,000. On December 30, 2021. |Iiileeson was paid the amount billed less a retainage of 10%. Accrued interest income on the $800,000 of shortterm treasury bills that did not mature in 2021 amounted to $9,200. The interest will be received when the treasury bills mature in February, 2022. The interest is available to pay for construction expenditures incurred in 2021. VV Required: [Hint: prepare journal entries like we did in class before preparing the financial statements.) A. Prepare, in good form, the statement of revenues, expenditures, and changes in fund balance for the Village Hall capital projects fund for the year ended December 31, 2021. B. Prepare, in good form, the balance sheet of the Village Hall capital projects fund at December 31, 2021. C. In the notes to the financial statements, how should the construction expenditures be reported in the capital asset note? Hint: remember how the (Zita;r of De Kalb reported its police station before it was completed