According to ACCT567, in a Government funded projects like schools, colleges, bridges etc., an accountant must maintain a variety of accounts, and the capital projects fund is no exception. A capital projects fund is an account that tracks the acquisition, construction and financing of capital assets in the company. At a minimum, a company must record closing entries to post depreciation expense, recognize interest expense and close out net income to the equity account. Every company needs a capital projects fund account, which is generally used when projects are fully or partially financed by government funding or donations. Because these funds often have strings attached and must go to a specific project, a capital project fund makes it easy to attribute restricted funds to appropriate expenses. At the end of the accounting period, the accountant must accrue interest on any loans associated with the capital projects to the capital project fund. Accountant must record capital asset depreciation is a debit to depreciation expense and a credit to accumulated depreciation. At every accounting period, the accountant will post any donations or government funding concerning the specific project as project revenue and all expenses as project expenses. Solution According to ACCT567, in a Government funded projects like schools, colleges, bridges etc., an accountant must maintain a variety of accounts, and the capital projects fund is no exception. A capital projects fund is an account that tracks the acquisition, construction and financing of capital assets in the company. At a minimum, a company must record closing entries to post depreciation expense, recognize interest expense and close out net income to the equity account. Every company needs a capital projects fund account, which is generally used when projects are fully or partially financed by government funding or donations. Because these funds often have strings attached and must go to a specific project, a capital project fund makes it easy to attribute restricted funds to appropriate expenses. At the end of the accounting period, the accountant must accrue interest on any loans associated with the capital projects to the capital project fund. Accountant must record capital asset depreciation is a debit to depreciation expense and a credit to accumulated depreciation. At every accounting period, the accountant will post any donations or government funding concerning the specific project as project revenue and all expenses as project expenses..

1. According to ACCT567, in a Government funded projects like schools, colleges, bridges etc., an
accountant must maintain a variety of accounts, and the capital projects fund is no exception. A
capital projects fund is an account that tracks the acquisition, construction and financing of
capital assets in the company. At a minimum, a company must record closing entries to post
depreciation expense, recognize interest expense and close out net income to the equity account.
Every company needs a capital projects fund account, which is generally used when projects are
fully or partially financed by government funding or donations. Because these funds often have
strings attached and must go to a specific project, a capital project fund makes it easy to attribute
restricted funds to appropriate expenses.
At the end of the accounting period, the accountant must accrue interest on any loans associated
with the capital projects to the capital project fund. Accountant must record capital asset
depreciation is a debit to depreciation expense and a credit to accumulated depreciation. At every
accounting period, the accountant will post any donations or government funding concerning the
specific project as project revenue and all expenses as project expenses.
Solution
According to ACCT567, in a Government funded projects like schools, colleges, bridges etc., an
accountant must maintain a variety of accounts, and the capital projects fund is no exception. A
capital projects fund is an account that tracks the acquisition, construction and financing of
capital assets in the company. At a minimum, a company must record closing entries to post
depreciation expense, recognize interest expense and close out net income to the equity account.
Every company needs a capital projects fund account, which is generally used when projects are
fully or partially financed by government funding or donations. Because these funds often have
strings attached and must go to a specific project, a capital project fund makes it easy to attribute
restricted funds to appropriate expenses.
At the end of the accounting period, the accountant must accrue interest on any loans associated
with the capital projects to the capital project fund. Accountant must record capital asset
depreciation is a debit to depreciation expense and a credit to accumulated depreciation. At every
accounting period, the accountant will post any donations or government funding concerning the
specific project as project revenue and all expenses as project expenses.