I have put my answers in Bold.

1.

A county acquires equipment for $16,000,000 at the beginning of 2015. The equipment has an 8-year life, no residual value. At the beginning of 2021 (6 years later), the equipment is sold for $9,000,000. Use straight-line depreciation, if appropriate. The equipment is used for general operations and is reported in the general fund.

What is reported in the general fund's operating statement, related to this equipment, in 2015?

Select one:

A. Expense of $16,000,000

B. The equipment is not reported in the operating statement

C. Expense of $2,000,000

D. Expenditure of $16,000,000

2.

A county acquires equipment for $16,000,000 at the beginning of 2015. The equipment has an 8-year life, no residual value. At the beginning of 2021 (6 years later), the equipment is sold for $9,000,000. Use straight-line depreciation, if appropriate. The equipment is used for general operations and is reported in the general fund.

What is reported in the general fund's operating statement, related to this equipment, in 2018?

Select one:

A. Revenue, $9,000,000

B. Other financing source, $9,000,000

C. Gain on sale, $5,000,000

D. Loss on sale, $7,000,000

3.

A county acquires equipment for $16,000,000 at the beginning of 2015. The equipment has an 8-year life, no residual value. At the beginning of 2021 (6 years later), the equipment is sold for $9,000,000. Use straight-line depreciation, if appropriate. The equipment is used for a parking garage and is reported in an enterprise fund.

What is reported in the enterprise fund's operating statement, related to this equipment, in 2015?

Select one:

A. Expense of $2,000,000

B. The equipment is not reported in the operating statement

C. Expenditure of $16,000,000

D. Expense of $16,000,000

4.

A county acquires equipment for $16,000,000 at the beginning of 2015. The equipment has an 8-year life, no residual value. At the beginning of 2021 (6 years later), the equipment is sold for $9,000,000. Use straight-line depreciation, if appropriate. The equipment is used for a parking garage and is reported in an enterprise fund.

What is reported in the enterprise fund's operating statement, related to this equipment, in 2021?

Select one:

A. Loss on sale, $7,000,000

B. Revenue, $9,000,000

C. Other financing source, $9,000,000

D. Gain on sale, $5,000,000

5.

A general fund uses the consumption method to record inventories. Beginning inventories are $10,000, purchases are $600,000, and ending inventories are $12,000.

The general fund records an end-of-year adjusting entry that:

Select one:

A. Credits nonspendable fund balance by $12,000

B. Debits unassigned fund balance by $2,000

C. Debits nonspendable fund balance by $12,000

D. Debits nonspendable fund balance by $2,000

9.

Below is the preclosing trial balance of a county's general fund at year-end: (use chart for questions 9 through 12)