Question
1-a During late 2016, the voters of the City of Smithville authorized tax-supported bond issues totaling $8,000,000 as partial financing for a series of projects
1-a During late 2016, the voters of the City of Smithville authorized tax-supported bond issues totaling $8,000,000 as partial financing for a series of projects to construct streets, curbs, culverts, and storm sewers in various parts of the city. The estimated total cost of the series of projects, which are expected to extend over the next three years, was $10,200,000. In addition to the bond financing, voters also approved a special cent sales tax to assist in financing the projects. The sales tax begins January 1, 2017 and will continue for five years. The sales tax is projected to generate $500,000 each year.
Required Prepare general journal entries as necessary to record the transactions described below in the Street Improvement Fund general journal and, if applicable, in any other funds and in the governmental activities general journal. USING THE ENTRIES LISTED IN THE ATTACHMENT.
1-b In early 2017, design plans and specifications for the first project, the Elm Street Project, were submitted by a construction engineering firm. The firm billed the Street Improvement Fund for $125,000. USING THE ENTRIES LISTED IN THE ATTACHMENT.
Required: Record this billing and the related Vouchers Payable liability in the Street Improvement Fund and governmental activities journals. (Note: this transaction was not encumbered.)
ash Vouchers payable Retainage payable Construction contract payable Fund balarn Revenues-sales taxes Other financing sources-bond proceeds Construction expendituresStep by Step Solution
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