The following transactions and events occurred in Lanesburg Township in 20×7 1: The township assembly agreed that a new police and fire department building would be constructed at a cost not to exc

The following transactions and events occurred in Lanesburg Township in 20×7

1: The township assembly agreed that a new police and fire department building would be constructed at a cost not to exceed $1,500,000, on land owned by the township

2: Cash with which to finance the project was received from the following sources:

Transfer from General Fund: $100,000

State-Federal Grant: 500,000

Bank of Lanesburg (long-term note): 900,000

Total: $1,500,000

The state federal grant is for 1/3 of the project cost, not to exceed $500,000, and any unearned balance must be returned to the state.

3: Cash was disbursed for building projects from the Capital Projects Fund as follows:

Construction Contract: $1,400,000

Architect Fees: 50,000

Engineering Charges: 20,000

Total: 1,470,000

The unearned portion of the grant was refunded to the state, the remaining cash was transferred to the General Fund, and the Capital Projects Fund was terminated.

Required: Prepare general journal entries to record the foregoing facts in the Capital Projects Fund general ledger, assume that the budgetary and subsidiary accounts are not used.

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