Your city has decided to build a new library. The projected cost is $2 million. A bond issue for $1.2 million has been authorized, and the remainder is supposed to come from a contribution of $800,000 from the general fund. The bonds sold for $1.3 million, a premium of $100,000. Create the required journal entries for the following transactions:
•The budget for the library
•The payment and receipt of funds from the general fund
•The issuance of the bonds
Assume that the premium remained in the capital projects fund.
Identify all of the funds required for these entries.