A $30 Million Contract Is Awarded by a County for Construction

Multiple Choice

A $30 million contract is awarded by a county for construction of a building. Bonds are issued to finance construction, in the amount of $30 million. During the first year, contractors bill the county $22 million for work done, and $20 million is paid in cash to contractors. At year-end, the capital projects fund reports the following fund balances:

A) Restricted, $8 million.
B) Restricted, $8 million; Committed, $2 million.
C) Restricted, $10 million.
D) Committed, $10 million.