I need help with problem section (m), everything else I have solved, so you can use the journal entries I completed as reference. Please explain how you get calculation for section m.

Residents from the Town of Mountain View authorized a $8,000,000 renovation to their historic town hall on

November 15, 2016. Financing for the project consists of $3100,000 from a 4 percent serial bond issue,

$2,600,000 from a state grant, and $2,300,000 from the General Fund. Debt service for the serial bonds will be

provided by a one quarter cent city sales tax imposed on every dollar of sales in the city. The town has a

calendar year end.

Prepare journal entries to record the related transactions in the town's capital projects fund, debt service

fund, and governmental activities at the governmentwide

level. (Do not round intermediate calculations.

If no entry is required for a transaction/event, select "No Journal Entry Required" in the first

account field.)

Transaction Fund General Journal Debit Credit

a. Record the 2020 budget for the Serial Debt Service Fund. Sales taxes of $300,000 are expected to be collected in 2020; the only appropriation is expected to be six months of interest on the serial bond.

a Debt Service fund

Estimated Revenues 300,000

Appropriations 62,000

Budgetary Fund Balance 238,000

Capital Projects Fund

No Journal Entry Required

Governmental Activities

No Journal Entry Required

b. The town transfers $2,300,000 from the General Fund to a newly established capital projects fund.

b Debt Service fund

No Journal Entry Required

Capital Projects Fund

Cash 2,300,000

Other Financing SourcesInterfund Transfers In 2,300,000

Governmental Activities

No Journal Entry Required

c. Planning and architect's fees for the town hall renovation are paid in the amount of $260,000.

c Debt Service fund

No Journal Entry Required

Capital Projects Fund

Construction Expenditures 260,000

Cash 260,000

Governmental Activities Construction Work in Progress 260,000

Cash 260,000

d. The town hall renovation construction contract is awarded to a local contractor, Central Paving and Construction, for $6,720,000.

d Debt Service fund

No Journal Entry Required

Capital Projects Fund

Encumbrances 6,720,000

Encumbrances Outstanding 6,720,000

Governmental Activities

No Journal Entry Required

e. On April 1, 2020, the town issues serial bonds with a face value totaling $3,100,000 and having maturities ranging from one to 20 years at 104.

The bonds bear interest of 4 percent per annum, payable semiannually on April 1 and October 1.

e(1) Debt Service fund Record the issue of bonds in the Debt Service Fund

Cash 124,000

Oth Fi i S P i B d P bl 124 000

Other Financing SourcesPremium on Bonds Payable 124,000

e(2) Premiums on bonds issued must be deposited directly in the debt service fund and are restricted for debt service. (Remember to amend the debt service fund budget because this premium was not anticipated.)

Estimated Other Financing SourcesPremium on Bonds 124,000

Budgetary Fund Balance 124,000

e(3) Capital Projects Fund Premiums are amortized using the straight-line method over 40 interest periods. Record the issue of bonds.

Cash 3,100,000

Other Financing SourcesProceeds of Bonds 3,100,000

e(4) Governmental Activities Record the issue of bonds.

Cash 3,224,000

Premium on Bonds Payable 124,000

Bonds Payable 3,100,000

f. The capital projects fund paid the city's Utility Fund $30,000 for wiring associated with the renovation. No encumbrance had been recorded for this service.

f Debt Service fund

No Journal Entry Required

Capital Projects Fund

Construction Expenditures 30,000

Cash 30,000

Governmental Activities Construction Work in Progress 30,000

Cash 30,000

g. On October 1, 2020, the city mailed checks to bondholders for semiannual interest on the bonds.

g Debt Service fund

ExpendituresInterest 62,000

Cash 62,000

Capital Projects Fund

No Journal Entry Required

Governmental Activities

Premium on Bonds Payable 3,100

ExpensesInterest on Long-term debt 58,900

Cash 62,000

h. Sales taxes earmarked for debt service of $300,000 were collected.

h Debt Service fund

Cash 300,000

Revenues 300,000

Capital Projects Fund

No Journal Entry Required

Governmental Activities Cash 300,000

General RevenuesTaxes 300,000

i. Central Paving and Construction submitted a progress billing to the town for $3,100,000. The city's public works inspector agrees that all milestones have been met for this portion of the work.

i Debt Service fund

No Journal Entry Required

Record the reversal of encumbrances for the progress to date on the project and also the construction

expenditure for the invoice received.

Capital Projects Fund

Encumbrances Outstanding 3,100,000

Construction Expenditures 3,100,000

Encumbrances 3,100,000

Contracts Payable 3,100,000

Governmental Activities

Construction Work in Progress 3,100,000

Contracts Payable 3,100,000

j. The town paid Central Paving and Construction the amount it had billed, except for 4 percent that was withheld as a retained percentage per terms of the contract.

j Debt Service fund

No Journal Entry Required

Capital Projects Fund

Contracts Payable 3,100,000

Contracts PayableRetained Percentage 124,000

Cash 2,976,000

Governmental Activities

Contracts Payable 3,100,000

Contracts PayableRetained Percentage 124,000

Cash 2,976,000

k. Grant funds totaling $2,600,000 are received from the state historical society because eligible expenditures have been made.

k Debt Service fund

No Journal Entry Required

Capital Projects Fund

Cash 2,600,000

Revenues 2,600,000

Governmental Activities

Cash 2,600,000

Program RevenueGeneral Government 2,600,000

l. At year-end, closing entries are made; In the capital projects fund, $2,300,000 of the fund balance is assigned, and the remainder is restricted.

l(1) Debt Service fund

Appropriations 62,000

Budgetary Fund Balance 362,000

Estimated Revenues 300,000

Estimated Other Financing SourcesPremium on Bonds 124,000

l(2) Record the entry to close the operating statement account in the Debt Service Fund.

Revenues 300,000

Other Financing SourcesPremium on Bonds Payable 124,000

ExpendituresInterest 62,000

Fund BalanceRestricted 362,000

l(3) Capital Projects Fund Record the entry to close the budgetary statement account in the Capital Projects Fund.

Revenues 2,600,000

Other Financing SourcesInterfund Transfers In 2,300,000

Other Financing SourcesProceeds of Bonds 3,100,000

Construction Expenditures 3,390,000

Fund BalanceRestricted 2,310,000

Fund BalanceAssigned 2,300,000

m. Record the 2021 budget for the Serial Debt Service Fund; $250,000 of earmarked sales taxes are expected to be collected in 2021; appropriations include a $310,000 principal payment on April 1 and two serial bond interest payments.

m Debt Service fund

Estimated Revenues 250,000

Budgetary Fund Balance 117,800

Appropriations 367,800

Capital Projects Fund

No Journal Entry Required

Governmental Activities

No Journal Entry Required