The construction of a new high school football complex for Allen Independent Sch
ID: 2401815 • Letter: T
Question
The construction of a new high school football complex for Allen Independent School District is accounted for in a Capital Projects Fund. Construction is scheduled to begin in 20X2 and financing for the construction came from the following sources in 20X1:
Reimbursement grant (cash received)
from state government $ 2,000,000
Issuance of general obligation bonds 60,000,000
Transfer from the General Fund 3,000,000
In the 20X1 statements for the Capital Projects Fund, Allen should report these amounts as
Other
Unearned Financing
Revenues Sources
A. $65,000,000 $0
B. $63,000,000 $2,000,000
C. $2,000,000 $63,000,000
D. $0 $65,000,000
Explanation / Answer
Unearned Revenue:-
Reimbursement grant (cash received) from state government is Unearned Revenue
Hence Unearned Revenue = $2000000
Other Financing Source :-
Issuance of general obligation bonds + Transfer from the General Fund
= 60000000 + 3000000 = $63000000
Option C is correct
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