Prepare the journal entries for the events listed below for the capital projects
ID: 2455729 • Letter: P
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 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.
Explanation / Answer
Journal Entry
12/31/2014 Cash 9700000 Taxes Receivable 2750000 Contracts Payable 1850000 Capital Project Fund 10600000 12/31/2014 Cash 26523000 Taxes Receivable 26523000