The citizens of Spencer County approved the issuance of $2,000,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex. A capital projects fund was established for that purpose. The preclosing trial balance of the courthouse annex capital project fund follows:

Trail Balance-December 31, 2015

Debits

Credits

Cash

$900,000

Contract payable

$550,000

Due from state government

200,000

Encumbrances

85,000

Expenditures-capital

1,850,000

Intergovernmental grant

400,000

OFS: premium on bonds

45,000

OFS: proceeds sale of bonds

2,000,000

Budgetary fund balance-

Reserve for encumbrances

85,000

Transfer out

45,000

$3,080,000

$3,080,000

a. Prepare any closing entries necessary at year-end

b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the courthouse annex capital project fund.

c. Prepare a balance sheet for the Courthouse Annex Capital Project Fund, assuming all unexpended resources are restricted to construction of the courthouse annex.