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.