You are given the following post-closing trial balance for the Special Assessment Capital Projects Fund of the city of Stone Bank as of January 1st, 2018. The project was started last year and should be completed in June of 2018.
Dr. Cr.
Cash 290,000
Contracts payable-retained % 60,000
fund balance-reserved for encumbrances 80,000
fund balance-unreserved, undesignated 150,000
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 on January 1st, 2018:
Cash 20,000
Special assess. rec-current 250,000
Special assess. rec-deferred 250,000
revenues 250,000
deferred revenues 250,000
fund balance-reserved for debt service 20,000
totals 520,000 520,000
The following events occurred during 2018:
January 2nd-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 5th-prior year encumbrances are restored, and new encumbrances of $138,000 are recorded.
February 1st-$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 28th-$115,000 was paid on outstanding special assessment bonds, including interest of $15,000
March 14th-Delinquent special assessments and interest thereon of $2,650 were collected
May1st-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 10th-A check for $100,000 was issued to the contractor.
REQUIRED: Prepare the 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