Maxim county just completed construction of a new town hall to be used for its governmental offices. the employees have moved in and the new building is officially in use. the county used a capital projects fund to account for the construction of the building, and the building came in under budget. there is a fund balance of $12,000. the county should: a. transfer the remaining funds to the general fund to pay operating expenses. b. transfer the remaining funds to the debt service fund which will be handling the long-term debt incurred for the construction of the building. c. return the excess to the source of the restricted funding. d. all of the above may be appropriate ways to treat the fund balance.

The answers are:

B) Transfer the remaining funds to the debt service fund which will be handling the long-term debt incurred for the construction of the building.

C) Return the excess to the source of the restricted funding.

Explanation:

The fund balance of $12,000, means that the money left over was $12,000. When a government entity's project has a left over or excess, called surplus, it must first return it to the debt service fund.

At the end of the construction project if any money is left over, it must be returned to the source of the restricted funding.  

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