A State Constructs an Office Building

A state constructs an office building.The construction is financed with: (1) a transfer of $1 million from the General Fund; (2) a grant of $2 million from the federal government; (3) bond proceeds of $7 million;and (4) earnings of $100,000 from temporary investment of bond proceeds.All transactions occur in one year.
-Based on the preceding set of facts,what should be reported in the financial statements of the General Fund for the year?

A) other financing uses of $1 million
B) expenditures of $1 million
C) other financing sources of $2 million and other financing uses of $1 million
D) revenues of $2 million and other financing sources of $7 million

Correct Answer:

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