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