Question
During the fiscal year ended June 30, 20X9, an enterprise fund of St. Cloud acquired computer equipment costing $110,000 on account and issued $400,000 of
During the fiscal year ended June 30, 20X9, an enterprise fund of St. Cloud acquired computer equipment costing $110,000 on account and issued $400,000 of long-term bonds. Revenues of the enterprise fund will be used to repay bond interest and principal. What effect did these transactions have on St. Cloud's enterprise fund assets and long-term debt?\ \ Assets Long-Term Debt\ A) Increase of $400,000 Increase of $400,000\ B) Increase of $110,000 Increase of $400,000\ C) Increase of $510,000 Increase of $400,000\ D) Increase of $510,000 No effect
During the fiscal year ended June 30, 20X9, an enterprise fund of St. Cloud acquired computer equipment costing $110,000 on account and issued $400,000 of long-term bonds. Revenues of the enterprise fund will be used to repay bond interest and principal. What effect did these transactions have on St. Cloud's enterprise fund assets and long-term debt?\ \ Assets Long-Term Debt\ A) Increase of $400,000 Increase of $400,000\ B) Increase of $110,000 Increase of $400,000\ C) Increase of $510,000 Increase of $400,000\ D) Increase of $510,000 No effect
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
Financial and managerial accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
1st edition
111800423X, 9781118233443, 1118016114, 9781118004234, 1118233441, 978-1118016114
