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 Other financing sources in the Capital Projects Fund?

Question

Quizplus · Accepted Answer

Other financing sources in the Capital Projects Fund would include the transfer from the General Fund ($1 million), the grant from the federal government ($2 million), and the bond proceeds ($7 million), totaling $10 million. The earnings from temporary investment of bond proceeds ($100,000) are not considered an other financing source but rather investment income. Therefore, the correct total is $10 million, which includes the transfer, grant, and bond proceeds.

A State Constructs an Office Building