a. In late November 2017 the Elm Street Project was completed and the contractor for the project
Question:
a. In late November 2017 the Elm Street Project was completed and the contractor for the project requested a ?nal payment of $1,070,000. This amount was recorded as a liability.
Required:
Record the liability for the final billing in both the Street Improvement Fund and governmental activities journals.Please use attached journal terms.
b. During the year sales taxes were collected in the amount of $450,000. Required: Make the summary journal entries in both the Street Improvement Fund and governmental activities journals to record the collection of sales taxes. Use attached journal terms.
Capital Projects
Cash
Vouchers payable
Retainage payable
Construction contract payable
Fund balance
Revenues-sales taxes
Other financing sources-bond proceeds
Construction expenditures
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