The Town of Drexel has the following financial transactions.1. The town council

The Town of Drexel has the following financial transactions.1. The town council adopts an annual budget for the General Fund estimating general revenues of $1.7 million approved expenditures of $1.5 million and approved transfers out of $120000.2. The town levies property taxes of $1.3 million. It expects to collect all but 3 percent of these taxes during the year. Of the levied amount $40000 will be collected next year after more than 60 days.3. The town orders two new police cars at an approximate cost of $110000.4. A transfer of $50000 is made from the General Fund to the Debt Service Fund.5. The town pays a bond payable of $40000 along with $10000 of interest using money previously set aside.6. The Town of Drexel issues a $2 million bond at face value to acquire a building to convert into a high school.7. The two police cars are received with an invoice price of $112000. The voucher has been approved for this amount but not yet been paid.8. The town acquires the building for the high school for $2 million in cash and immediately begins renovating it.9. Depreciation on the new police cars is computed as $30000 for the period.10. The town borrows $100000 on a 30-day tax anticipation note.11. The Town of Drexel begins a special assessment curbing project. The government sells $800000 in notes at face value to finance this project. The town has pledged to guarantee the debt if the assessments collected do not cover the entire balance.12. A contractor completes the curbing project and is paid $800000.13. The town assesses citizens $850000 for the completed curbing project.14. The town collects the special assessments of $850000 in full and repays the debt plus $50000 in interest.15. The town receives a $10000 cash grant to beautify a local park. The grant must be used to reimburse specific costs that the town incurs.16. The town spends $4000 to beautify the park.Requireda. Prepare journal entries for the town based on the production of fund-based financial statements.b. Prepare journal entries in anticipation of preparing government-wide financial statements.