Capital project funds are used in the accounting of government projects to keep a record of financial resources used in construction or acquiring capital assets such as roads, buildings, dams & railways. To explain: The reason for not permanently recording the fixed assets acquired with proceeds from general obligation bond issue.

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Answer 1

Question

Chapter 16, Problem 1UTI

To determine

Introduction: Capital project funds are used in the accounting of government projects to keep a record of financial resources used in construction or acquiring capital assets such as roads, buildings, dams & railways.

To explain: The reason for not permanently recording the fixed assets acquired with proceeds from general obligation bond issue.

Expert Solution & Answer

Explanation of Solution

The fixed assets acquired with proceeds from general obligation bond issue are not recorded permanently because these must be repaid. As amount acquired from bond issues must be repaid after a period, in the same way, any fixed asset acquired from bond issue must have to be repaid at the time of redemption.

Acquisition of these assets does not provide ownership right and it is not considered as the property of the government, that is why these assets are not recorded permanently in capital project fund.

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Students have asked these similar questions

The fund that records the payment of principal and interest associated with long-term debt is the _________________, and the fund that records construction project activity is the _______________. None of these capital projects fund; debt service fund general fund; permanent fund capital projects fund; general fund debt service fund; capital projects fund

Bonds are issued at a premium by a capital projects fund. The premium should bea. retained in the capital projects fund.b. credited directly to the restricted fund balance of the capital projects fund.c. transferred to the debt service funds.d. used to reduce the net cost of the project involved.

Prepare a Balance Sheet for the governemental Funds assumiong all unexpended spendable net resources in the capital projects fund are classified as restricted and in the debt service fund are classified as assigned.

Answer 2

Question

Chapter 16, Problem 1UTI

To determine

Introduction: Capital project funds are used in the accounting of government projects to keep a record of financial resources used in construction or acquiring capital assets such as roads, buildings, dams & railways.

To explain: The reason for not permanently recording the fixed assets acquired with proceeds from general obligation bond issue.

Expert Solution & Answer

Explanation of Solution

The fixed assets acquired with proceeds from general obligation bond issue are not recorded permanently because these must be repaid. As amount acquired from bond issues must be repaid after a period, in the same way, any fixed asset acquired from bond issue must have to be repaid at the time of redemption.

Acquisition of these assets does not provide ownership right and it is not considered as the property of the government, that is why these assets are not recorded permanently in capital project fund.

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Answer 3

Question

Chapter 16, Problem 1UTI

To determine

Introduction: Capital project funds are used in the accounting of government projects to keep a record of financial resources used in construction or acquiring capital assets such as roads, buildings, dams & railways.

To explain: The reason for not permanently recording the fixed assets acquired with proceeds from general obligation bond issue.

Expert Solution & Answer

Explanation of Solution

The fixed assets acquired with proceeds from general obligation bond issue are not recorded permanently because these must be repaid. As amount acquired from bond issues must be repaid after a period, in the same way, any fixed asset acquired from bond issue must have to be repaid at the time of redemption.

Acquisition of these assets does not provide ownership right and it is not considered as the property of the government, that is why these assets are not recorded permanently in capital project fund.

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Answer 4

Question

Chapter 16, Problem 1UTI

To determine

Introduction: Capital project funds are used in the accounting of government projects to keep a record of financial resources used in construction or acquiring capital assets such as roads, buildings, dams & railways.

To explain: The reason for not permanently recording the fixed assets acquired with proceeds from general obligation bond issue.

Expert Solution & Answer

Explanation of Solution

The fixed assets acquired with proceeds from general obligation bond issue are not recorded permanently because these must be repaid. As amount acquired from bond issues must be repaid after a period, in the same way, any fixed asset acquired from bond issue must have to be repaid at the time of redemption.

Acquisition of these assets does not provide ownership right and it is not considered as the property of the government, that is why these assets are not recorded permanently in capital project fund.

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Answer 5

Chapter 16, Problem 1UTI

To determine

Introduction: Capital project funds are used in the accounting of government projects to keep a record of financial resources used in construction or acquiring capital assets such as roads, buildings, dams & railways.

To explain: The reason for not permanently recording the fixed assets acquired with proceeds from general obligation bond issue.

Expert Solution & Answer

Explanation of Solution

The fixed assets acquired with proceeds from general obligation bond issue are not recorded permanently because these must be repaid. As amount acquired from bond issues must be repaid after a period, in the same way, any fixed asset acquired from bond issue must have to be repaid at the time of redemption.

Acquisition of these assets does not provide ownership right and it is not considered as the property of the government, that is why these assets are not recorded permanently in capital project fund.

Answer 6

Chapter 16, Problem 1UTI

To determine

Introduction: Capital project funds are used in the accounting of government projects to keep a record of financial resources used in construction or acquiring capital assets such as roads, buildings, dams & railways.

To explain: The reason for not permanently recording the fixed assets acquired with proceeds from general obligation bond issue.

Expert Solution & Answer

Explanation of Solution

The fixed assets acquired with proceeds from general obligation bond issue are not recorded permanently because these must be repaid. As amount acquired from bond issues must be repaid after a period, in the same way, any fixed asset acquired from bond issue must have to be repaid at the time of redemption.

Acquisition of these assets does not provide ownership right and it is not considered as the property of the government, that is why these assets are not recorded permanently in capital project fund.

Answer 7

Chapter 16, Problem 1UTI

To determine

Introduction: Capital project funds are used in the accounting of government projects to keep a record of financial resources used in construction or acquiring capital assets such as roads, buildings, dams & railways.

To explain: The reason for not permanently recording the fixed assets acquired with proceeds from general obligation bond issue.

Answer 8

Expert Solution & Answer

Explanation of Solution

The fixed assets acquired with proceeds from general obligation bond issue are not recorded permanently because these must be repaid. As amount acquired from bond issues must be repaid after a period, in the same way, any fixed asset acquired from bond issue must have to be repaid at the time of redemption.

Acquisition of these assets does not provide ownership right and it is not considered as the property of the government, that is why these assets are not recorded permanently in capital project fund.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 16 - Prob. 1UTI Ch. 16 - If a capital projects fund has authority to...Ch. 16 - Prob. 3UTI Ch. 16 - The debt service fund does not use budgetary...Ch. 16 - When a debt service fund receives resources, it...Ch. 16 - Prob. 6UTI Ch. 16 - Prob. 7UTI Ch. 16 - Prob. 8UTI Ch. 16 - Prob. 9UTI Ch. 16 - Prob. 10UTI

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