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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The Answer of 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:

The City of Warwick Authorized a Project to Modernize Its