A city accounts for its capital acquisitions using encumbrances. ...

[dakota nelson]

A city accounts for its capital acquisitions using encumbrances. When the city enters into a contract to acquire equipment, what journal entry should it make?
 
  a. debit expenditures - capital outlay; credit vouchers payable
  b. debit encumbrances; credit budgetary fund balance reserved for encumbrances
  c. debit equipment; credit vouchers payable
  d. debit encumbrances; credit appropriations - equipment

Question 2

The entry to close the appropriate insurance account at the end of the accounting period is
 a. debit Income Summary; credit Prepaid Insurance
  b. debit Prepaid Insurance; credit Income Summary
  c. debit Insurance Expense; credit Income Summary
  d. debit Income Summary; credit Insurance Expense

[ErinKing]

Answer to Question 1

b

Answer to Question 2

d

[dakota nelson]

Excellent

[meow1234]

Thanks for the timely response, appreciate it