Option #1: Journal Entries for Building Capital Projects FundPart A:The City of Golden Mountain began construction this year on a new fire station. It is financed by a $4,000,000 bond issue and supplemented by $1,000,000 to be transferred from the General Fund. The following transactions occurred during the year.The $1,000,000 transfer was made from the General Fund to the Building Capital Projects Fund.The City signed a contract with Fixit All Construction for a major part of the project on a bid of $3,700,000.Preliminary planning and engineering costs of $88,000 were vouchered for Tall Mountain Engineering Company. This cost had not been encumbered.A payable of $23,500 was recorded for a billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the new building.An invoice in the amount of $1,400,000 was received from Fixit All Construction for progress on the project.The $4,000,000 bond issue was issued at par.The invoice from Fixit All Construction was paid, less a 10% retainage. Required: Prepare journal entries to record the preceding information in the general ledger for the Building Capital Projects Fund.Submit your responses in Excel format. Part B:Identify and describe the three broad categories of service activities that most general purpose governments perform.What is the accounting difference between using the modified approach for infrastructure assets and depreciating infrastructure assets? Under the modified approach, what happens if infrastructure assets are not maintained at or above the established condition level?