Chapter 7, Problem 3E

(General Ledger Entries) The following transactions and events occurred in Lanesburg Township during 20X7:

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:

The state–federal grant is for one-third 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 costs from the Capital Projects Fund as follows:

4. 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 budgetary accounts and subsidiary ledgers are not used.