Assume that the City of Prospect has established a Capital Projects Fund (CPF) because a grant from the federal government has been approved that will be applied toward building of a new City Hall Building. Given this information, and that provided in each item below, decide whether the JEs (or statement about JEs) is accurate = true or inaccurate = false.

26. The required JE to show the approval of this federal grant by the CPF (assuming that the grant is for $18,000,000 and is certain) (Hint: Dr. goes to Due from Federal Govt) on the books of the CPF is

Due from Federal Govt 18,000,000

Revenues 18,000,000

27. The JE on the books of the GA to record this grant would be identical to the one listed in # 26 above.

28. The CPF enters into a contract with a turn-key builder to build the new City Hall Building for $18,000,000. The JE required for the CPF is

    None at this time

29. The JE required on the books of the GA for the event described in # 28 above is the same as in # 28 - i.e., no JE at this time.