Question

The following financial resources were among those received by Seco City during year 1:_____

For acquisition of major capital facilities $6,000,000
To create a permanent trust for governmental purposes 2,000,000
With respect to the foregoing resources, what amount should be recorded in special revenue funds?
A) $0
B) $2,000,000
C) $6,000,000
D) $8,000,000

Answer 1

A) $0

Step-by-step explanation:

Seco City will record $0 as special revenue funds during year 1 with respect to the foregoing resources.

The $6,000,000 for acquisition of major capital facilities would be recorded as capital projects fund.

$2,000,000 to create a non-expendable trust would be recorded as private purpose trust fund.