The entry in the capital projects fund to record the additional funding for the construction should be
A)Debit Due from general fund $0.5 million; Credit Other financing sources-nonreciprocal transfer-in $0.5 million.
B)Debit Due from general fund $0.5 million; Credit Revenue $0.5 million.
C)Debit Cash $0.5 million; Credit Due to general fund $0.5 million.
D)Debit Other financing sources $0.5 million; Credit Due to general fund $0.5 million.
Use the following information to answer questions 10 and 11
Voters in Phillips City approved the construction of a new city hall building and approved a $5 million bond issue with a stated rate of interest of 6 percent to fund the construction.When the bonds were issued, they sold for 101.What are appropriate entries related to the premium?

Question

Quizplus · Accepted Answer

The entry records the receipt of additional funding from the general fund as a nonreciprocal transfer, which is not considered revenue but rather an other financing source.

The Entry in the Capital Projects Fund to Record the Additional