The city of Nancy is installing a lighting system in the Harvey Subdivision, which is considered to
Question:
The city of Nancy is installing a lighting system in the Harvey Subdivision, which is considered to be a major general government capital project for the city. The system is being financed by levying $500,000 of special assessments on benefitted property owners and transferring $750,000 (in the next year) from the General Fund. $100,000 of these assessments were due and collected during the current year. Also, as of the end of the fiscal year, the city had incurred expenditures of $750,000 on the project.
What is the amount of special assessment revenues that should be reported in the Capital Projects Fund as of the end of the current year?
a. $0—Special assessments should be accounted for in a Special Revenue Fund.
b. $100,000.
c. $500,000.
d. $0—Special assessments should be accounted for as other financing sources, not revenues.
Step by Step Answer:
Governmental And Nonprofit Accounting Theory And Practice
ISBN: 9780132552721
9th Edition
Authors: Robert J Freeman, Craig D Shoulders, Gregory S Allison, Terry K Patton, Robert Smith,