8. During late 2016, the voters of the City of Smithville authorized tax-supported bond issues totaling $8,000,000 as partial financing for a series of projects to construct streets, curbs, culverts, and storm sewers in various parts of the city. The estimated total cost of the series of projects, which are expected to extend over the next three years, was $10,200,000. In addition to the bond financing, voters also approved a special ½ cent sales tax to assist in financing the projects. The sales tax begins January 1, 2017 and will continue for five years. The sales tax is projected to generate $500,000 each year.
9. The city submitted a $190,000 purchase order for design plans and specifications for the second street improvement project, the “Spruce Street Project.”

Required:

Prepare general journal entries as necessary to record the transactions described below in the Street Improvement Fund general journal and, if applicable, in the governmental activities general journal. Do not record entries at this time in other affected funds; those entries will be made in the later chapters of this cumulative problem that cover the affected funds. Use account titles listed under the drop down[Account (# - Description)]menu. Be sure theyear2017is selected from the drop-down[Year]menu and the appropriate paragraph number shown in bold-face font below is in the[Transaction Description]box.

Record this encumbrance in the Street Improvement Fund.

Answer rating: 100% (QA)

9 CITY OF SMITHVILLE 10 STREET IMPROVEMENT FUND JOURNAL EN TRIES ... View the full answer