Required a. What type of fund should St. George County use to account for the retained percentage? Explain your answer. b. Record the following events in the retained percentage fund. 1. A retained percentage was withheld from a progress payment of $900,000. 2. The retained percentage was invested in certificates of deposit. 3. Interest of $675 was received. 4. At year-end, interest of $1,350 was accrued. There was no adjustment to fair value. 5. Nominal accounts were closed.

Required a. What type of fund should St. George County use to account for the retained percentage? Explain your answer. b. Record the following events in the retained percentage fund. 1. A retained percentage was withheld from a progress payment of $900,000. 2. The retained percentage was invested in certificates of deposit. 3. Interest of $675 was received. 4. At year-end, interest of $1,350 was accrued. There was no adjustment to fair value. 5. Nominal accounts were closed.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 88P

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