Answer:
1. To Record the cash received on issue of bonds.
Date     Account Titles and Explanation          Debit              Credit
              Cash                                                  $25,000,000
                    Other financing uses-Bond proceeds                  $25,000,000
               <em>(To record the cash received on the issue of Bond)</em>
 
2. To Record the inception of the construction contract.
Date     Account Titles and Explanation          Debit              Credit
              Encumbrances                                 $22,000,000
                        Encumbrances outstanding                           $22,000,000
              <em>(To Record the inception of the construction contract) </em>
3. To Record the encumbrances outstanding on account of the construction contract.
Date     Account Titles and Explanation      Debit             Credit
             Encumbrances outstanding        $12,000,000
                     Encumbrances                                              $12,000,000
           <em> (To Record the encumbrances outstanding on account)
</em>
Date     Account Titles and Explanation        Debit            Credit
               Construction Expenditure            $12,000,000
                        Construction payable                                 $12,000,000
           <em> (To Record the encumbrances outstanding on account)
</em>
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4. To Record the transfer of the balance in the fund balance account.
Date     Account Titles and Explanation        Debit            Credit
              Other Financing sources -            $25,000,000 
              Proceed of Bonds
                      Fund balance - Restricted                            $13,000,000
                      Construction Expenditure                             $12,000,000
            <em> (To record the construction expenses paid)</em>