144.What is the difference between Permanent Funds and Private Purpose Trust Funds? 145.What is a bond refunding and why do governments refund bonds? 146.What is the difference between a current...

144.What is the difference between Permanent Funds and Private Purpose Trust Funds?

145.What is a bond refunding and why do governments refund bonds?

146.What is the difference between a current refunding and advance refunding?

147.On 9/1/2015Birmingham County sold bonds at par value in the amount of $12,000,000 to finance construction of a new library. On 10/10/2015 Hills County entered into a contract with a private contractor to build a new library building in the amount of $11,000,000. On 12/1/2015, when the contract was half finished, the contractor submitted a bill for $5,500,000. The bill was paid on 12/15/2015 less Hills' standard 5% retention to assure any construction deficiencies are corrected. Hills County operates on a Dec. 31 fiscal year.

Required: Prepare the journal entries required in the Capital Projects Fund for the above transactions.