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Problem II. (20 Points) Capital Projeets Fund Prepare center (Gail) by Mud Flats County. The County adopts a formal budget and uses encumbrance entries to record the following transactions related to the construction of a new justice accounting. Make all required entries for the Capital Projects Fund only A. The County adopts a capital budget at the beginning of the year. To finance construction, the County will transfer $6 million from its General Fund and apply for a federal grant of $6 million. It appropriates $11.5 million for construction of the building and $500,000 for furniture and equipment. Record the budget. Fund. The federal government approves the $6 million construction grant and sends a check to the County. Record this revenue. C. D. The County invests $7,500,000 in investments. The County awards a construction contract in the amount of $10 million and encumbers the funds. A 10% retainer has been agreed upon by both parties. E. The contractor sends a progress billing to the County in the amount of $4.8 million. The bill is approved by the engineers and a voucher is prepared. F. G. Investments totaling $4,700,000 are redeemed along with $100,000 of interest. H. The liability in Transaction F is paid, less the retainage. I. A second progress billing is submitted, $2,500,000. The bill is approved and a voucher is prepared

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