Hello, this is Victor

I have been having difficulty understanding Special Assessments and the details regarding the question below. So, I can get help gaining a better understanding of the subject, that would be great appreciated

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Question:

Special Assessment Project

After discussions with property owners residing on Bruce and Garrison Streets, the city council of Hobson City, Alabama authorized installation of street lights to better protect area citizens. Suppose total cost of the project is $3,300,000. Hobson City's general fund will contribute $300,000 and ten-year term bonds will be issued to fund construction of the project. Hobson City can issue bonds paying 3 percent annually at par. The principal and interest will be repaid in ten equal annual assessments paid by the affected property owners, calculated as a 10-year annuity whose present value is the bond principal. Because each annual assessment exceeds the interest due on the bonds, the excess is invested at 3 percent to retire the principal.

Required a. Calculate the amount of the total annual assessment needed to pay the annual interest for ten years and retire the bonds. $ 99,000b. Assume the government is liable for the bonds. Prepare the fund journal entries and identify the funds affected when the bonds are issued, the assessments are levied, the first assessment is collected, and the first interest payment is made. Capital projects fund Description Cash Bond proceeds To record bond Issuance. 3,300.0\") I D V 0 V 300.003 I 0 0 Debt service fund Description Emendimresi'nterest 9 I D I D V Investments 6 I D V D I To record levy of special assessments. ASSESmenE receivable : I 35.169.15 I D V Revenue from assessment 3 I D V 35.169.15 I To record collection of current assessments. Cash 6 I 35169.15 I D V Amman: receivable 3 I D V 35.169.15 I To record interest payment Expendimr'es-intert 3 I 9.000 I D V Cash 6 V D V 9.000 I To record investment of excess assessment amount. c. Repeat b. assuming the government has no liability for the bonds, and assessments collected, invested, and disbursed for interest payments, are reported in a custodial fund. Capital projects fund Description Debit Credit Cash 300,000 x 0 Deductions OV 300,000 x To record bond issuance. Custodial fund Description Debit Credit Investments X 0 x 0 Assessments receivable X OV O X To record levy of special assessments. Assessments receivable X 35 x Revenue from assessments X 0 x To record collection of current assessments. Cash X 0 x Assessments receivable X OV 0 X To record interest payment Expenditures-interest X 9,000 x 0 Cash OV 9,000 x To record investment of excess assessment amount. Check