Answer:
1.
Budgetary fund balance reserved for encumbrances (DR) $7,200,000
Encumbrances-Capital Project (CR) $7,200,000
2.
Cash (DR) $1,200,000
Government Grant (CR) $1,200,000
3.
Cash (DR) $6,000,000
Bonds Payable (CR) $6,000,000
Explanation:
1. The Budgetary entry for encumbrance is given as follows :
Budgetary fund balance reserved for encumbrances (DR) $7,200,000
Encumbrances-Capital Project (CR) $7,200,000
2. The government grant received will be recorded as :
Cash (DR) $1,200,000
Government Grant (CR) $1,200,000
3. The Issuance of Bonds needs to be recorded in the journal ledger as :
Cash (DR) $6,000,000
Bonds Payable (CR) $6,000,000
