Answered step by step
Verified Expert Solution
Question
1 Approved Answer
5 Your city borrows $50,000 (notes payable) to purchase an asset and pays $40,000 in cash for use in its overall general purpose. What should
5
Your city borrows $50,000 (notes payable) to purchase an asset and pays $40,000 in cash for use in its overall general purpose. What should be the CREDIT entry reported in the general fund? Assume that this asset was properly budgeted this year. a. $40,000 in cash and $50,000 in notes payable b. $40,000 in cash and $50,000 in other financing sources - debt c. $50,000 in cash and $40,000 in notes payable d. $50,000 in cash and $40,000 in other financing sources - debt e. $90,000cash If the City of Sulphur bought $400,000 of supplies and used $300,000 in the current year, what is the appropriate debit (under the full accrual method) for the purchase? a. Supplies Inventory for $400,000 b. They should ask for an audit because that is a lot of supplies c. Supplies expense for $300,000 d. Supplies Inventory for $100,000 e. Supplies expenditures for $300,000 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started