A state constructs an office building.The construction is financed with: (1)a transfer of $1 million from the General Fund; (2)a grant of $2 million from the federal government; (3)bond proceeds of $7 million;and (4)earnings of $100,000 from temporary investment of bond proceeds.All transactions occur in one year.
-Based on the preceding set of facts,how much should be reported as Revenues in the Capital Projects Fund?

Question

Quizplus · Accepted Answer

Revenues in the Capital Projects Fund include grants and earnings from investments. Therefore, the $2 million federal grant and the $100,000 earnings from investment are reported as revenues, totaling $2,100,000.

A State Constructs an Office Building