The state government established a capital project fund in 2016 to build new highways. Thefund is supported by a 5 percent tax on diesel fuel sales in the state. The tax is collectedby private gas stations and remitted in the following month to the State. The followingtransactions occurred during 2017:Capital Project Fund Trial Balance:December 31, 2016DebitsCreditsCash$8,700,000Taxes Receivable2,550,000Contracts Payable$1,875,000Fund Balance9,375,0001.$2,100,000 of encumbrances outstanding at December 31, 2016, were re-established.2.During the year, fuel taxes were remitted to the State totaling $23,600,000, includingthe amount due at the end of the previous year. In addition, $2,900,000 is expected tobe remitted in January of next year for fuel sales in December 2017.3.The State awarded new contracts for road construction totaling $23,650,000.4.During the year, contractors submitted invoices for payment totaling $24,005,000.These were all under the terms of contracts (i.e., same $ amounts) issued by the State.