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QUESTION DETAIL
Related User
Votes
In a Governmental Capital Projects Fund, how do I journalize a fixed asset and L/T debt for a sewer improvement paid for by another municipal entity, and allowing my municipality to pay our 50% of the total cost to them over 10 years - 10 annual payments?
ANSWER
The BIDaWIZ Team's Answer:
You should debit a new long term fixed asset account; equal to the funding amount,
and you should credit a long term liability account; equal to the funding expenditure
amount that is due, and payable, over the 10 year term.
