The following transactions relate to the construction of a building by the Village of Alma. The...

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The following transactions relate to the construction of a building by the Village of Alma. The Village adopts a formal budget and uses encumbrance accounting. Prepare journal entries to record the following transactions in the Capital Projects Fund. 1. The Village Council adopts a capital budget at the beginning of the year. To finance construction of the building, the Village will transfer $2 million from its General Fund and apply for a state grant of $3 million. It appropriates $5 million for construction. 2. The General Fund transfers $2 million to the Capital Projects Fund for the new project. 3. Alma awards a construction contract in the amount of $4.3 million. 4. The contractor sends a progress billing to Alma in the amount of $2.6 million. The bill is approved by the Village's engineers and a voucher is prepared, less a 10% retainage pending completion of the building and final approval by the Village. 5. The contractor encounters construction problems due to unforeseen soil conditions. As a result, Alma authorizes the cost increase of the construction contract by $300,000. 6. The voucher in 4, above, is paid. 7. Alma received $2.5 million grant from the state for the building construction. 8. The contractor completes construction, and sends Alma an invoice for the remaining $1 million. The Village's engineers inspect the building and accept the work. The invoice is approved and paid, together with the amount retained on the progress billing in 4, above. JE Journal Entries Dollar Amounts Number Account Names (be sure to indent your credit accounts) Debit Credit The following transactions relate to the construction of a building by the Village of Alma. The Village adopts a formal budget and uses encumbrance accounting. Prepare journal entries to record the following transactions in the Capital Projects Fund. 1. The Village Council adopts a capital budget at the beginning of the year. To finance construction of the building, the Village will transfer $2 million from its General Fund and apply for a state grant of $3 million. It appropriates $5 million for construction. 2. The General Fund transfers $2 million to the Capital Projects Fund for the new project. 3. Alma awards a construction contract in the amount of $4.3 million. 4. The contractor sends a progress billing to Alma in the amount of $2.6 million. The bill is approved by the Village's engineers and a voucher is prepared, less a 10% retainage pending completion of the building and final approval by the Village. 5. The contractor encounters construction problems due to unforeseen soil conditions. As a result, Alma authorizes the cost increase of the construction contract by $300,000. 6. The voucher in 4, above, is paid. 7. Alma received $2.5 million grant from the state for the building construction. 8. The contractor completes construction, and sends Alma an invoice for the remaining $1 million. The Village's engineers inspect the building and accept the work. The invoice is approved and paid, together with the amount retained on the progress billing in 4, above. JE Journal Entries Dollar Amounts Number Account Names (be sure to indent your credit accounts) Debit Credit

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