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.