The state government established a capital project fund in 2016 to build new highways The fund is supported by a 5 percent tax on diesel fuel sales in the state The tax is collected by private gas station and remitted in the following month the State The following transaction occurred during 2017 Capital Project Fund Trial Balance December 31, 2016 Debit Credit Cash $8,700,000 Taxes Receivable 2,550,000 Contracts Payable $1,875,000 Fund Balance 9,375,000 $2,100,000 of encumbrances outstanding at December 31, 2016, were re established During the year, fuel taxes were remitted to the State totaling $23,600,000, including the amount due at the end of the previous year In addition, $2,900,000 is expected to be remitted in January of next year for fuel sales in December 2017 The State awarded new contracts for road construction totaling $23,650,000 During the year, contractors submitted invoices for payment totaling $24,005,000 These were all under the terms of contracts (i,e , same $ amounts) issued by the State The State made payments on outstanding accounts of $23,375,000 The state government operates a debt service fund to service outstanding general obligation bonds The following transaction occurred during 2017 Debt Service Fund Trial Balance December 31, 2016 Debit Credit Cash $175,000 Fund Balance 175,000 The sate General Fund provided cash of $4,800,000 through transfer to the debt service fund Payments for matured inters totaled $2, 985,000 and payments for matured principal totaled $1,850,000during the year In December, the State refunded bonds to obtain a better interest rate New bonds were issued providing proceeds of $20,000,000, which was immediately used to retire outstanding bonds in the same amount Required Use the Excel template provided A separate tab is provided in Excel for each of the requirements a) Prepare a journal entries recording the events 1 to 8 (above) for the capital projects and debt service funds b) Post the journal entries to T accounts c) Prepare closing entries d) Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the Governmental Funds ( the General Fund and special revenue fund financial statements have already been prepared) e) Prepare a Balance Sheet for the Governmental Funds assuming all unexpected spendable net resources in the capital projects fund are classified as restricted and in the debt service fund are classified as assigned

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The state government established a capital project fund in 2016 to build new highways. The fund is supported by a 5 percent tax on diesel

The state government established a capital project fund in 2016 to build new highways. The fund is supported by a 5 percent tax on diesel fuel sales in the state. The tax is collected by private gas station and remitted in the following month the State. The following transaction occurred during 2017:

Capital Project Fund Trial Balance

December 31, 2016

Debit Credit

Cash $8,700,000

Taxes Receivable 2,550,000

Contracts Payable $1,875,000

Fund Balance 9,375,000

$2,100,000 of encumbrances outstanding at December 31, 2016, were re-established.
During the year, fuel taxes were remitted to the State totaling $23,600,000, including the amount due at the end of the previous year. In addition, $2,900,000 is expected to be remitted in January of next year for fuel sales in December 2017.
The State awarded new contracts for road construction totaling $23,650,000.
During the year, contractors submitted invoices for payment totaling $24,005,000. These were all under the terms of contracts (i,e., same $ amounts) issued by the State.
The State made payments on outstanding accounts of $23,375,000. The state government operates a debt service fund to service outstanding general obligation bonds. The following transaction occurred during 2017:

Debt Service Fund Trial Balance

December 31, 2016

Debit Credit

Cash $175,000

Fund Balance 175,000

The sate General Fund provided cash of $4,800,000 through transfer to the debt service fund.
Payments for matured inters totaled $2, 985,000 and payments for matured principal totaled $1,850,000during the year.
In December, the State refunded bonds to obtain a better interest rate. New bonds were issued providing proceeds of $20,000,000, which was immediately used to retire outstanding bonds in the same amount.

Required:

Use the Excel template provided. A separate tab is provided in Excel for each of the requirements:

a) Prepare a journal entries recording the events 1 to 8 (above) for the capital projects and debt service funds.

b) Post the journal entries to T-accounts.

c) Prepare closing entries.

d) Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the Governmental Funds ( the General Fund and special revenue fund financial statements have already been prepared)

e) Prepare a Balance Sheet for the Governmental Funds assuming all unexpected spendable net resources in the capital projects fund are classified as restricted and in the debt service fund are classified as assigned.