Caraway County financed its new $6,000,000 courthouse by issuing general obligation bonds. In the year financing was secured and construction began, the fund(s) and/or nonfund fund accounts that would most likely be affected would be

Question

Quizplus · Accepted Answer

The construction of a new courthouse is a capital project and therefore would be accounted for in the Capital Projects Fund. The issuance of general obligation bonds would result in an increase in the county's long-term debt, which would be recorded in the General Long-Term Liabilities account. Additionally, the construction of a new courthouse will result in new capital assets in the form of the building and associated improvements, which would be recorded in the General Capital Assets account. Therefore, the Capital Projects Fund and the General Capital Assets and General Long-Term Liabilities accounts would be affected by the financing and construction of the courthouse.

Caraway County Financed Its New $6,000,000 Courthouse by Issuing General