The state government established a capital project fund in 2016 to bu.docx

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The state government established a capital project fund in 2016 to build new highways. The fund is supported by a 5 percent tax on diesel fuel sales in the state. The tax is collected by private gas stations and remitted in the following month to the State. The following transactions occurred during 2017: Capital Project Fund Trial Balance: December 31, 2016 Debits Credits Cash $8,700,000 Taxes Receivable 2.550.000 Contracts Payable $1.575.000 Fund Balance 9.375,000 1. $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, including the amount due at the end of the previous year. In addition, $2,900,000 is expected to be 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. 5. The State made payments on outstanding accounts of $23,375,000 The state

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