Question: (Journal entries for several funds) The following transactions took place during 2012. Record these transactions in journal form. Also, indicate the fund in which each transaction is recorded.

1. The city sold some of its street repair equipment. The equipment originally cost $50,000, but it was sold for $500.

2. A $2,000,000 bond issue was sold at par. The bonds were general obligation debt issued to finance the cost of an addition to the local court system building.

3. Nondedicated property taxes totaling $100,000 were collected.

4. Construction of a bridge across the Mississippi River was completed at a total cost of $8,000,000. The bridge had been under construction since 2010. Costs incurred in previous years totaled $7,000,000. (Prepare the closing entry, assuming the only transaction during 2012 was the expenditure necessary to complete the bridge. Also, assume fund balance is restricted.)

5. A Debt Service Fund paid the interest on outstanding debt: $800,000.

6. A Debt Service Fund retired bonds with a face value of $3,000,000.

7. The General Fund made its annual transfer of $6,000,000 to a Debt Service Fund.

8. Old office equipment in the mayor's office was discarded. The original cost of the equipment was $900.

9. A contract was signed with Legal, Inc. to construct an addition to the court building. The amount of the contract was $5,000,000.

10. The construction costs paid on the court addition during the year were $500,000.

11. The Fire Department acquired a fire engine. The vehicle had been ordered earlier in the year. The order was encumbered for $140,000. The actual cost of $138,000 was paid when the fire engine was received.