After scussions with property owners residing on Bruce and Garrison Streets the city council of Hobson City, Alabama uthorised on street lights to better protection Suppose total cost of the project is $3.300.000 Hobson City's general fund will contribute 300,000 and ten year term bonds will be itsed to fund construction of the project. Hoon Cty can sur bonds paying 3 percentat par. The principal and interest will be repaid in ten equal annual assessments paid by the affected property owners, calculated as a 10 year whose presenta is the bond principal Beause each annual assessment exceeds the interest due on the bonds. the excess is invested at percent to retire the principal Required Calculate the amount of the total anal assessment needed to pay the annual interest for ten years and recite the bond $0 B. Assume the government is able for the bonds. Prepare the fund foomal eines and identify the funds alfected when the bonds are issued the assessments are wed, the first sestrert i collected, and the first interest payment is made Capital projects fund Description Credit Cash Mond proceedi to record bonds Debt service fund Description Credit Aceva Debit O Det A recebe To record collections Caith Door het O Ca ON O Repeat b. assuming the government has no liability for the bonds, and assessments collected invested, and disbursed for interest payments are reported in a custodial fund Capital projects fund Description Debit Credit OX Bond proceeds . OX To record bond is cance Custodial fund Description Debit Credit Assessments receivable Additions O OX To record levy of special assessments Cash OX Assessments receivable 0 OX To record collection of current assessments Deductions + OX Cash . OX To record interest payment Investments D 0 Cash To record investment of excess assessment amount. OV > X O 0 DIX