Author Question: The Income Summary account is used to adjust inventory (with the perpetual inventory system) and ... (Read 81 times)

stephzh · **on:** Jul 6, 2018

The Income Summary account is used to adjust inventory (with the perpetual inventory system) and record closing entries.
a. True
b. False
Indicate whether the statement is true or false

Question 2

The city is installing curbs and sidewalks in a subdivision as part of a special assessment capital improvement project. The capital improvements are being financed by an 800,000 eight year, 10, special assessment note payable.

The note and interest are to be repaid from special assessments levied against the property owners of the subdivision. The total amount of special assessments is 840,000 and will be collected evenly over eight years. The government should report Capital Projects Fund revenues for the current year equal to:
a. 0
b. 105,000
c. 800,000
d. 840,000