Author Question: An Enterprise fund receives a 100,000 capital grant and uses the funds to partially finance the ... (Read 117 times)

bobbysung · **on:** Jul 5, 2018

An Enterprise fund receives a 100,000 capital grant and uses the funds to partially finance the purchase of a 175,000 capital asset. The Enterprise Fund will report

A. Revenues of 100,000 and expenses of 175,000.
B. Non-operating revenues of 100,000 and capital assets of 175,000.
C. Capital contributions of 100,000 and expenses of 175,000.
D. Capital contributions of 100,000 and capital assets of 175,000.

Question 2

The balance in the prepaid rent account before adjustment at the end of the year is 32,000, which represents four months' rent paid on December 1 . The adjusting entry required on December 31 is
a. debit Rent Expense, 8,000; credit Prepaid Rent, 8,000
b. debit Prepaid Rent, 24,000; credit Rent Expense, 8,000
c. debit Rent Expense, 24,000; credit Prepaid Rent, 8,000
d. debit Prepaid Rent, 8,000; credit Rent Expense, 8,000