The City of Warwick Authorized a Project to Modernize Its

question 38

Essay

The City of Warwick authorized a project to modernize its street lighting.
a.The project will take approximately nine months to complete and will cost $290,000. The project will be financed by a $60,000 grant from the federal government and a $15,000 transfer from the General Fund. In addition, the city will issue $125,000 of special assessment serial bonds. Special assessments of $180,000, to be collected in two equal installments due November 1 each year, will be levied. The first installment is to go directly to the Capital Projects Fund. The remaining installment will be used to repay the related bond issue. The city desires that budgetary accounts be established for the project.
b.A construction contract for $265,000 is signed. The amount is encumbered.
c.The installment assessments of $180,000 are levied.
d.All but $1,000 of the first installment is collected.
e.Serial bonds are sold at a face value of $125,000 on an interest payment date.f. The transfer from the General Fund and the grant from the federal government are received.Required:Prepare journal entries in a Capital Projects Fund for the above events:

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Definitions:

Grammar

The set of structural rules governing the composition of clauses, phrases, and words in a natural language.

Confirmation Bias

The inclination to view new information as support for one's pre-existing opinions or hypotheses.

Fallacy of Popular Appeal

A logical fallacy that argues something is true because it is widely believed or accepted by many people.

Evolutionary Theory

A scientific theory that explains the diversity of life on Earth through the process of natural selection and genetic variation.