In 2017 Riverside began work on an outdoor amphitheater

and #6792
In 2017, Riverside began work on an outdoor amphitheater and concession stand at the city's
park. It is to be financed by a $3,500,000 bond issue and supplemented by a $500,000 General
Fund transfer. The following transactions occurred in 2017:1. The General Fund transferred
$500,000 to the Park Building Capital Projects Fund.2. A contract was signed with Restin
Construction Company for the major part of the project on a bid of $2,700,000.3. Preliminary
planning and engineering costs of $69,000 were vouchered for the Great Pacific Engineering
Company. (This cost had not been encumbered.)4. A payable was recorded for an $18,500
billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the
new concession stand.5. An invoice in the amount of $1,000,000 was received from Restin for
progress to date on the project.6. The $3,500,000 bonds were issued at par.7. The amount
billed by the contractor (see Transaction 5) less 5 percent retain age was paid.8. Temporary
investments were purchased at a cost of $1,800,000.9. Closing entries were prepared as of
December 31, 2017. Assume that $2,500,000 of the encumbrances outstanding will be paid
from the bond proceeds and are therefore considered restricted resources.Requireda. Prepare
journal entries to record the preceding information in the general ledger accounts for the Park
Building Capital Projects Fund. (You may ignore the entries that would also be required in the
governmental activities general journal at the government-wide level.)b. Prepare a balance
sheet for the Park Building Capital Projects Fund as of December 31, 2017.c. Prepare a
statement of revenues, expenditures, and changes in fund balances for the period.View
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In 2017 Riverside began work on an outdoor amphitheater and

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