Neither the capital assets acquired through a Capital Projects Fund nor the long-term debt issued to finance capital projects is normally accounted for in the CPF. Why? Where are such capital assets and long-term debt accounted for, and are there exceptions to this general rule?
Answer to relevant QuestionsWhat are demand bonds? In what circumstances is a government most likely to issue demand bonds? Are demand bonds reported as general long-term liabilities? Explain.Record the following transactions (both budgetary and actual entries) in the General Ledger of a CPF of Santiago County. Reflect all required accruals.1. The county issues $3,000,000 of 5%, 9-month bond anticipation notes at ...Butler County issued $2,000,000 of 9-month, 9% bond anticipation notes to provide financing for construction of a county baseball stadium. This prevented delays in beginning the project, which had been approved at an ...Some accountants believe that budgetary control of Debt Service Fund operations such as those illustrated in this chapter is unnecessary unless required by law. Others disagree. What is your opinion?What criteria must be met for a government to have the option of accruing unmatured interest on some of its general obligation bonds?
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