In 2020, the city of Carilandia began a paving project for its streets (capital project fund). The project will be financed with the issuance of a bond for $ 3,000,000 for 5 years at 6% interest. The bonds were issued on July 1, 2020, at par value. one-fifth of the principal plus interest is due on June 30 of each year, beginning June 30, 2021. The bond will be paid with the imposition of a contribution to the properties of the taxpayers of the city, therefore it is not a debt of the city. record the following transactions:

to. the issuance of the bond. (Remember that the bond will be financed with the tax imposed on the citizens).

b. a contract is made with the company ABC better ROads, which was the recipient of the project's auction.

c. the first invoice of the tax imposed on the property is sent to the citizens.

d. the paving of the streets was completed and the contractor sends an invoice to the city to pay for his services. and. the city issues the payment but withholds 10% of the project cost.

F. the city pays the withholding to the contractor

Answer rating: 100% (QA)

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