UESTION 49 Prepare the journal entries for the events listed below for the capit
ID: 2455730 • Letter: U
Question
UESTION 49
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 #3 The State awarded new contracts for road construction totaling $31,000,000.
Explanation / Answer
New contract is recorded as follows:
Date Accounts title Debit$ Credit$
Cash 31,000,000
Sales 31,000,000
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