Author Question: A bridge construction project, accounted for in a Capital Projects Fund, is in Year 2 of an ... (Read 46 times)

gbarreiro · **on:** Jul 5, 2018

A bridge construction project, accounted for in a Capital Projects Fund, is in Year 2 of an anticipated three year construction period. In Year 1, costs of 300,000 were incurred. In Year 2, 1,530,000 of costs were incurred.

What entry would be necessary in the General Capital Assets accounts for Year 2?

Debit Credit
A. Capital Outlay
Cash 1,530,000
1,530,000
B. Construction in progress
Cash 1,530,000
1,530,000
C. Construction in progress
Net investment in capital assets 1,530,000
1,530,000
D. Construction in progress
Net investment in capital assets 1,830,000
1,830,000

Question 2

It is critical for accountants to understand enterprise resource planning (ERP) systems.
Indicate whether the statement is true or false