Welby County Hospital entered into a capital lease to purchase a ...

[Kthamas]

Welby County Hospital entered into a capital lease to purchase a new MRI machine. The capitalizable cost of the equipment was 400,000 and the hospital made a 40,000 down payment.
 
  The entry required when the asset was acquired was
 
   Debit Credit
  A. Equipment
   Other Financing Sources  Capital Lease
   Cash 400,000
  360,000
  40,000
  B. Expenditures
   Other Financing Sources  Capital Lease
   Cash 400,000
  360,000
  40,000
  C. Equipment
  Expenditures
   Lease Payable
   Cash 360,000
  40,000
 
  360,000
  40,000
  D. Equipment
   Lease Payable
   Cash 400,000
  360,000
  40,000

Question 2

During the closing process, some balance sheet accounts are closed and end the period with a zero balance.
 a. True
  b. False
 
   Indicate whether the statement is true or false

[ryrychapman11]

Answer to Question 1

D

Answer to Question 2

False

[Kthamas]

Gracias!

[Joy Chen]

Excellent