Construction costs on project by the end of fiscal year


Matthew County issued a six month, 6%, $1,000,000 bond anticipation note on march 31, 20X5, to provide temporary financing for a major general government capital project. The issuance of long-term bonds had not yet received the legally required voter approval when the financial statements were issued, but most agree the voters will approve the referendum. However, in the event that the voters reject the long-term bond issue, the county has other sources it can use to finance the project.

1. Assuming the county has incurred $800,000 of construction costs on the project by the end of its fiscal year (June 30,20x5), the fund balance of the capital projects fund used to account for this project would be?

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Accounting Basics: Construction costs on project by the end of fiscal year
Reference No:- TGS047282

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