You are given the following post-closing trial balance for the Special Assessment Capital Projects Fund of the city of Stone Creek as of January 1, 2018. The project was started last year and should be completed in June of 2018. Debit CreditCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290,000Contracts Payable—Retained Percentage. . . . . . . . . . . 60,000Fund Balance—Restricted . . . . . . . . . . . . . . . . . . . . . . . . . 150,000Fund Balance—Assigned for Encumbrance . . . . . . . . . 80,000Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290,000 290,000The special assessments are collected by the debt service fund, which also makes payments of principal and interest on special assessment bonds. The city has guaranteed payment of the debt in the event of nonpayment by the special assessment property owners. The debt service fund has the following balances, shown on next page, on January 1, 2018. Debit CreditCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000Special Assessments Receivable—Current . . . . . . . . . . . . 250,000Special Assessments Receivable—Noncurrent . . . . . . . . 250,000Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000Deferred Inflows of Resources . . . . . . . . . . . . . . . . . . . . . . . 250,000Fund Balance—Restricted for Debt Service . . . . . . . . . . . . 20,000Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520,000 520,000The following events occurred during 2018:January 2— The city adopted an operating budget for 2018 construction activities. Expenditures are estimated at $223,400, including amounts encumbered in the prior year. Budgetary accounts are used.January 5— Prior-year encumbrances are restored, and new encumbrances of $108,000 are recorded.February 1— $220,000 of current special assessments are collected, along with interest of $17,600. Interest of $2,400 was billed on the uncollected current assessments, which were classified as delinquent.February 28— $140,000 was paid on outstanding special assessment bonds, including interest of $15,000.March 14— Delinquent special assessments and interest thereon of $2,650 were collected.May 1— Expenditures of $220,000 were vouchered to Contracts Payable. The usual 5% retained percentage was entered. The project is now complete at a total cost of $896,000.May 10— A check for $150,000 was issued to the contractor. Prepare journal entries to record each of the preceding events in the proper funds and groups of accounts using the following format:Date Fund or Account Group Entry
You are given the following post-closing
Debit Credit
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290,000
Contracts Payable—Retained Percentage. . . . . . . . . . . 60,000
Fund Balance—Restricted . . . . . . . . . . . . . . . . . . . . . . . . . 150,000
Fund Balance—Assigned for Encumbrance . . . . . . . . . 80,000
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290,000 290,000
The special assessments are collected by the debt service fund, which also makes payments of principal and interest on special assessment bonds. The city has guaranteed payment of the debt in the event of nonpayment by the special assessment property owners. The debt service fund has the following balances, shown on next page, on January 1, 2018.
Debit Credit
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Special Assessments Receivable—Current . . . . . . . . . . . . 250,000
Special Assessments Receivable—Noncurrent . . . . . . . . 250,000
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000
Deferred Inflows of Resources . . . . . . . . . . . . . . . . . . . . . . . 250,000
Fund Balance—Restricted for Debt Service . . . . . . . . . . . . 20,000
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520,000 520,000
The following events occurred during 2018:
January 2— The city adopted an operating budget for 2018 construction activities. Expenditures are estimated at $223,400, including amounts encumbered in the prior year. Budgetary accounts are used.
January 5— Prior-year encumbrances are restored, and new encumbrances of $108,000 are recorded.
February 1— $220,000 of current special assessments are collected, along with interest of $17,600. Interest of $2,400 was billed on the uncollected current assessments, which were classified as delinquent.
February 28— $140,000 was paid on outstanding special assessment bonds, including interest of $15,000.
March 14— Delinquent special assessments and interest thereon of $2,650 were collected.
May 1— Expenditures of $220,000 were vouchered to Contracts Payable. The usual 5% retained percentage was entered. The project is now complete at a total cost of $896,000.
May 10— A check for $150,000 was issued to the contractor.
Prepare
Date Fund or Account Group Entry
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