The City of Vaughan is building a new bridge, which will cost $14,000,000. The people of Vaughan approved the bridge in a referendum. The Provincial Government has promised to pay $4,000,000 and the Federal Government has offered a matching grant of $4,000,000. The City will issue bonds to pay the remainder of the money required for the bridge, with repayment in 10 years at 8% per year.

Before the March 31, 2021, year-end the following events occurred related to the capital fund:-

1. Contracts were entered into for the concrete foundations for the bridge at a

total cost if $2,200,000.

2. City engineers working on the project were paid $70,000 (not part of the concrete foundations).
3. $400,000 was received from each of the provincial and federal governments.
4. 6,000,000 of bonds were issued at 102 on March 31, 2021.

The City of Vaughan uses a fund accounting system and maintains separate funds for general operations and capital projects. It uses budgetary accounts and an encumbrance system to control expenditures for both the general fund and the capital fund.

Required:-

Prepare all journal entries relevant to the above information for the capital fund for the year ended March 31,2021. Assume that pledges from government departments are recorded in the year of the pledge. Do not prepare closing entries.