On June 1,2018,Brooktown Levied Special Assessments in the Amount of $500,000,payable

question 44

Multiple Choice

On June 1,2018,Brooktown levied special assessments in the amount of $500,000,payable in 10 equal annual installments beginning on June 30,2018.The assessment installments are intended to pay principal and interest on special assessment bonds for which the town has pledged its full faith and credit should assessments be insufficient.Assuming no allowance for uncollectible receivables,the journal entry in the debt service fund on June 1,2018 would include:

• A) A debit to Assessments Receivable-Current for $500,000.
• B) A debit to Assessments Receivable-Current for $50,000.
• C) A credit to Revenues for $500,000.
• D) No journal entry is made in the debt service fund because special assessments are used.

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Definitions:

Prior Service Credit

A pension plan feature that grants employees credit for service periods before the commencement of the pension plan, affecting their benefits.

Defined Benefit Pension Plan

A retirement plan where the benefits that an employee will receive upon retirement are defined based on a formula considering factors such as salary history and duration of employment.

Service Cost

The portion of the pension expense that is recognized for the increase in pension benefits related to employee services of the current period.