he following information relates to Bel City: 1. Capital projects fund: Financing for Bel's new civic center was provided by a combination of general fund transfers, a state grant, and an issue of general obligation bonds. Any bond premium on issuance is to be used for the repayment of the bonds at their $1.2 million par value. At December 31, Year 4, the capital projects fund for the civic center had the following closing entries: Revenues $ 800,000 Other financing sources - bond proceeds 1,230,000 Other financing sources - interfund transfers from the general fund 500,000 Expenditures $1,080,000 Other financing uses - interfund transfers 30,000 Assigned fund balance 1,420,000 Also, at December 31, Year 4, capital projects fund entries reflected a formal action by Bel's highest decision maker to honor the $1.3 million of encumbered purchase order