To defray engineering and other preliminary expenses incurred prior to the issuance of a long-term bond issue,a capital projects fund borrowed the sum of $50,000 on a short-term basis from National Bank.This transaction should be recorded in

Question

Quizplus · Accepted Answer

The borrowing of $50,000 on a short-term basis from National Bank is related to the capital projects fund, which is responsible for financing capital expenditures of the government. Therefore, this transaction should be recorded in the capital projects fund.

To Defray Engineering and Other Preliminary Expenses Incurred Prior to the Issuance