A county government secured a six-month, $600,000 loan at 5% interest from a local lending institution to finance a project at a county-owned park. The loan transaction took place one month prior to the end of the fiscal year, at which time 50% of the project was completed for $300,000. As of the end of the fiscal year, the county should report capital outlay expenditures in the amount of

Question

Quizplus · Accepted Answer

Capital outlay expenditures should reflect the actual amount spent on the project, which is $300,000, not including the interest on the loan.

A County Government Secured a Six-Month, $600,000 Loan at 5