Arada Subcity authorized a $3,600,000 building project to be financed from three sources:
General fund transfer -------------------------------- $600,000
Federal Government Grant ------------------------- $2,300,000
Bond Issue --------------------------------------------- $700,000
The project is to be constructed in part by private contractors. The fiscal year ends on June 30. The following transactions occurred in the first year ended June 30, 2002 (budgetary entry is not required):
A. The sum of $400,000 was borrowed in anticipation of a bond issue from the Commercial Bank of Ethiopia.
B. The accrual of assets from the general fund, AA City government, and federal government was approved.
C. Total purchase orders and other commitments issued for supplies, materials, and items of minor equipment required for the part of the project to be performed by the town's employees amounted to $480,000.
D. A contract was let for certain work to be done by a private contractor (Sunshine Construction) in the amount of $1,600,000.
E. Special engineering and miscellaneous costs that had not been encumbered were paid in the amount of $80,000.
F. A progress bill for $720,000 was received from Sunshine Construction Company for part of the work done.
7. Payment in full was received from the general fund and federal government that had agreed to pay part of the cost of the building.
8. The Commercial Bank of Ethiopia loan was repaid with interest amounting to $2,000. Interest is considered CPF expenditures.
9. Total disbursements for all costs encumbered in Transaction #3 amounted to $470,000.
10. The contractor's initial claim was verified and paid, $648,000.
11. The approved bonds were sold at par.
12. Payroll of $160,000 was paid.
13. An order estimated to cost $120,000 was placed for materials.
14. Invested idle cash of Br. 600,000 in temporary investments.
REQUIRED: Prepare the entry to record the above transactions in the capital project fund.