The Capital Projects Fund of Hood River Completed Construction of an Addition

question 67

Multiple Choice

The capital projects fund of Hood River completed construction of an addition to its city hall at a cost of $4,000,000.The city council approved payment of the amount due the general contractor,less a 10 percent retainage.How should the capital projects fund account for the 10 percent retainage?
I.As a credit of $400,000 to Deferred Revenue-Retained Percentage.
II.As a credit for $400,000 to Contracts Payable-Retained Percentage.

• A)I only
• B)II only
• C)Either I or II
• D)Neither I nor II

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Definitions:

Pigmented Hairs

Pigmented hairs are hairs that contain melanin, which gives hair its color, varying from person to person and changing with age.

Terminal Hairs

The thick, pigmented hairs that replace vellus hairs in certain body parts during puberty.

Lanugo

Fine, soft hair that covers the body of a fetus, serving as insulation before the development of fat layers.

Dermal Papilla

Structures located at the base of the hair follicle, containing capillaries and nerves, crucial for hair growth and health.