If a capital projects fund starts construction of a building in one year and finishes it in a subsequent year an entry must be made in the governmental activities accounts until the building is completed,inspected,and accepted.

Question

Quizplus · Accepted Answer

In each year during construction, an entry must be made in the general journal of Governmental Activities to record Construction in Progress. During the year the building is completed, Construction in Progress is reclassified to the Building account.

If a Capital Projects Fund Starts Construction of a Building