During the fiscal year ended June 30,20X9,the city of Moorhead constructed a new courthouse that was budgeted to cost $5,000,000.Moorhead used a capital projects fund to account for the construction activities.In July of 20X8,a bid was accepted from Diamond Construction to build the courthouse for $4,800,000.On June 15,20X9,Diamond completed construction and submitted a bill to the city for $4,900,000.The city accepted the bill and paid Diamond the entire amount owed,except for a 10 percentage retainage.On the statement of revenues,expenditures,and changes in fund balance prepared for the capital projects fund for the year ended June 30,20X9,expenditures should be reported at

Question

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Expenditures should be reported at $4,900,000, which is the total amount billed by Diamond Construction for the completed courthouse, even though a 10% retainage was withheld.

During the Fiscal Year Ended June 30,20X9,the City of Moorhead