In 2011 the city started and completed installation of curbs and sidewalks in a new subdivision. The project was funded through special assessments. The first $500,000 installment on $2,500,000 in special assessments was received and recorded in the capital projects fund in 2011. Over the next four years the remaining special assessments are due. How would the receipt of the special assessment funds be recorded in the capital projects fund in 2011?
|
Debits |
Credits |
|
|
a. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
500,000 |
|
|
Special Assessments Receivable . . . . . . . . . . . . |
2,000,000 |
|
|
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . |
500,000 |
|
|
Deferred Revenue . . . . . . . . . . . . . . . . . . . |
2,000,000 |
|
|
b. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
500,000 |
|
|
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . |
500,000 |
|
|
c. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
500,000 |
|
|
Other Financing Sources—Assessments . . . . . |
500,000 |
|
|
d. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
2,000,000 |
|
|
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . |
500,000 |
|
|
Due to Debt Service Fund . . . . . . . . . . . . . . |
2,000,000 |