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A general capital asset constructed several years ago by a capital projects fund was sold by the General Fund. Entries are necessary in the:

a. General Fund only
b. Capital Projects Fund only
c. Both General Fund and Capital Projects Fund
d. Enterprise Fund

User Eurosecom
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1 Answer

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Final answer:

The entries for the sale of a capital asset constructed by a capital projects fund but sold by the General Fund should only be recorded in the General Fund.

Step-by-step explanation:

When a general capital asset is sold, the entries should be recorded by the fund responsible for the transaction. Since the General Fund is the one that actually sold the asset, the entry to record the sale would be made in the General Fund only. The Capital Projects Fund is typically used to track the resources used to acquire or construct capital assets, not the sale of an asset after it has been completed. Furthermore, an Enterprise Fund is used for activities operated in a manner similar to private businesses where services are provided for a fee, which is typically not involved in this transaction unless the asset was sold to or by the enterprise activity.

User Huang Jinlong
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