Response to the following problem:
Prepare General Ledger entries
1. Township assembly agreed that a new police and fire department building would be constructed at a cost not to exceed $1,500,000, on land owned by the township.
2. cash received to finance project: Transfer from General Fund $100,000, State-federal grant $500,000, bank $900,000.
3. Cash disbursed for building costs from the capital project fund - Construction contract $1,400,000, Architect fees $50,000 and Enginnering charges $20,000.
4. The unearned portion of the grant was refunded to the state, the remaining cash was transferred to the general fund, and the capital project fund was terminated.