An enterprise fund purchases equipment for $1,000,000. The equipment has a 5-year estimated life, straight-line, no residual value. The equipment is sold for $450,000 after 2 years. How does the enterprise fund report the sale? Dr cash for $450,000, and:

Select one:

A. Cr proceeds from sale of equipment (other financing source) for $450,000

B. Cr revenues for $450,000

C. Dr loss on sale of equipment for $150,000, cr equipment, net for $600,000

D. Cr equipment, net for $1,000,000, dr loss on sale for $550,000

A governmental fund issues 3% bonds for $15,000,000 and uses this money to refund 5% bonds currently carried at $14,900,000. How is this reported by the governmental fund?

Select one:

A. Debit bonds payable $14,900,000, debit deferred outflows $100,000 and credit bonds payable $15,000,000.

B. Debit cash $15,000,000 and credit bonds payable $15,000,000.

C. Debit expenditures $15,000,000 and credit other financing sources $15,000,000.

D. Debit other financing uses $14,900,000; debit expenditures $100,000; and credit other financing sources $15,000,000.

A proprietary fund issues 3% bonds for $15,000,000 and uses this money to refund 5% bonds currently carried at $14,900,000. How is this reported by the proprietary fund?

Select one:

A. Debit bonds payable $14,900,000, debit deferred outflows $100,000 and credit bonds payable $15,000,000.

B. Debit other financing uses $14,900,000; debit expenditures $100,000; and credit other financing sources $15,000,000.

C. Debit cash $15,000,000 and credit bonds payable $15,000,000.

D. Debit expenditures $15,000,000 and credit other financing sources $15,000,000.