Financing for the renovation of Cherry City's municipal park,begun and completed during 20X1,came from the following sources:

In its 20X1 capital projects fund operating statement,Cherry should report these amounts as:

Question

Financing for the renovation of Cherry City's municipal park,begun and completed during 20X1,came from the following sources:

In its 20X1 capital projects fund operating statement,Cherry should report these amounts as:

Quizplus · Accepted Answer

Option B is the best choice because it accurately reflects the sources of financing for the park renovation project. The bond issue provided $1,500,000, the general funds provided $500,000, and the grants provided $250,000. These amounts should be reported as sources of financing for the park renovation project in the operating statement of the capital projects fund for 20X1. Option A does not include the grants as a source of financing, Option C mistakenly shows the $500,000 general funds as an expense, and Option D shows the $1,250,000 bond and grant proceeds as expenses instead of sources of financing.

Financing for the Renovation of Cherry City's Municipal Park,begun and Completed