Question

If a governmental entity issued $3,000,000 in bonds, received a $500,000 federal capital grant, and transferred $750,000 to a Capital Projects Fund from the General Fund, the Capital Projects Fund financial statements should report Other Financing Sources (OFS) of:_______. a. $500,000 b. $750,000 c. $3,750,000 d. $4,250,000

Answer 1

Option "D" is the correct answer to the following question.

Step-by-step explanation:

Given:

Government bond price = $3,000,000

Federal capital grant = $500,000

Capital Projects Fund transfer = $750,000

Amount of financing Source = ?

Computation of the amount of financing Source:

Amount of financing Source = Government bond price + Federal capital grant + Capital Projects Fund transfer

Amount of financing Source = $3,000,000 + $500,000 + $750,000

Amount of financing Source = $4,250,000