Question
Prepare the journal entries for the events listed below for the capital projects funds. The state government established a capital project fund in 2014 to
Prepare the journal entries for the events listed below for the capital projects funds.
The state government established a capital project fund in 2014 to build new highways. The fund is supported by a 5% tax on diesel fuel in the state. The tax is collected by private gas stations and remitted in the following month to the State.
Capital Project Fund Trial Balance:
12/31/2014
Cash $9,700,000
Taxes receivable 2,750,000
Contracts payable 1,850,000
Fund Balance 10,600,000
Prepare Journal Entry 2:. During the year, fuel taxes were remitted to the State totaling $26,523,000, including the amount due at the end of the previous year. In addition, 3,256,000 is expected to be remitted in January of the next year for fuel sales in December.
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