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

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.

Defines the meaning of Capital Projects Fund and Debt Service Funds.

describe and contrast Capital Projects Funds and Debt Service funds

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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