A Capital Project Fund received a $300,000 transfer from the General Fund and a $500,000 federal grant for a highway project. The grant is being paid in two phases-$200,000 for Year 1 expenditures and $300,000 when the project is completed which is anticipated to be at the end of Year 2. Capital Project Fund revenues reported at the end of Year 1 should be

Question

Quizplus · Accepted Answer

The Capital Project Fund received $300,000 from the General Fund and $200,000 of the federal grant in Year 1, totaling $500,000 of revenue. However, the remaining $300,000 of the federal grant will not be received until the project is completed at the end of Year 2. Therefore, only $200,000 of revenue should be reported at the end of Year 1.

A Capital Project Fund Received a $300,000 Transfer from the General