Question

In Fulbright County, the Culture and Recreation Department constructed a library in one of the county's high-growth areas. The construction was funded by a number of sources. Below is selected information related to the Library Capital Project Fund. All activity related to the library construction occurred within the current fiscal year. The county operates on a calendar-year basis.

A $650,000 federal grant was received to help finance construction of the library.
a. Debit: Cash $650,000; Credit: Federal Grant Revenue $650,000

b. Debit: Library Capital Project Fund $650,000; Credit: Cash $650,000

c. Debit: Cash $650,000; Credit: Library Capital Project Fund $650,000

d. Debit: Federal Grant Revenue $650,000; Credit: Library Capital Project Fund $650,000

Answer 1

The correct answer is option d: Debit: Federal Grant Revenue $650,000; Credit: Library Capital Project Fund $650,000.

Step-by-step explanation:

The subject of this question is Business, as it relates to the financial management of a government entity.

The correct answer is option d: Debit: Federal Grant Revenue $650,000; Credit: Library Capital Project Fund $650,000. This is because a federal grant is revenue for the county, which should be recorded as an increase in the Federal Grant Revenue account (debit) and an increase in the Library Capital Project Fund account (credit).

Some SEO keywords for this answer are government budget, federal grant, revenue, financial management, accounting.