On June 1, 2018, Brooktown levied special assessments in the amount of $500,000, payable in 10 equal
Question:
On June 1, 2018, Brooktown levied special assessments in the amount of $500,000, payable in 10 equal annual installments beginning on June 30, 2018. The assessment installments are intended to pay principal and interest on special assessment bonds for which the town has pledged its full faith and credit should assessments be insufficient. Assuming no allowance for uncollectible receivables, the journal entry in the debt service fund on June 1, 2018 would include:
A: a debit to assessments receivable -- current for $500,000
B: a debit to assessments receivable -- currnt for $50,000
C: a credit to revenues for $500,000
D: no journal entry is made iun the debt service fund because special assessents are used.
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield