The capital projects fund of Petit City paid salaries to city employees who worked on construction of a capital project.The debit for the entry in the capital projects fund to record this event should be to

Question

Quizplus · Accepted Answer

The debit should be made to the Construction Expenditures account because salaries and wages paid to employees who worked on a capital project are considered part of the cost of the project and should be capitalized. Therefore, the Capital Projects Fund should record the expenditure as a debit to the Construction Expenditures account.

The Capital Projects Fund of Petit City Paid Salaries to City