A Bridge Construction Project, Accounted for in a Capital Projects

question 48

Short Answer

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? $\begin{array}{llr}&&\text { Debit }&\text {Credit }\\ \text { A. } & \text { Capital Outlay} &\$1,530,000\\ &\text { Cash } &&\$1,530,000\\\text { B. } & \text { Construction in progress } &\$1,530,000\\ &\text { Cash } &&\$1,530,000\\\text { C. } & \text { Construction in progress } &\$1,530,000\\ &\text { Net position. } &&\$1,530,000\\\text { D. } & \text { Construction in progress } &\$1,830,000\\ &\text { Net position. } &&\$1,830,000\\\end{array}$

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