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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Turnkey Operation

A business arrangement where a project or business is delivered in a complete and operational state.

Oil Refinery

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