Prepare the journal entries for the events listed below for the capital projects
ID: 2455732 • Letter: P
Question
Prepare the journal entries for the events listed below for the capital projects funds and also prepare the closing entries.
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
Journal Entry #5: The State made payments on outstanding accounts of 29,818,000 and prepare the CLOSING Entries
Explanation / Answer
The journal entry is:
Contract payable $29,818,000.
Cash $29,818,000
To record the payments on outstanding accounts.