This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A city accounts for its capital acquisitions using encumbrances. When the city enters into a ... (Read 89 times)

dakota nelson

  • Hero Member
  • *****
  • Posts: 604
on: Jul 5, 2018
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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ErinKing

  • Sr. Member
  • ****
  • Posts: 362
Reply #1 on: Jul 5, 2018
Answer to Question 1

b

Answer to Question 2

d


dakota nelson

  • Member
  • Posts: 604
Reply 2 on: Jul 5, 2018
Gracias!

parker125

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Eric Bunge and Mimi Hoang, nARCHITECTS, New Aqueous City. Eric Bunge and Mimi Hoang, nARCHITECTS, New Aqueous City.
Working and Living and Playing in the City Dump of Phnom Penh, Cambodia Working and Living and Playing in the City Dump of Phnom Penh, Cambodia
GDP and Capital per Worker, 2009 GDP and Capital per Worker, 2009
A Production Function with Diminishing Marginal Product of Capital A Production Function with Diminishing Marginal Product of Capital
An electron is accelerated from rest through a potential difference of 3750 V. It enters a ... An electron is accelerated from rest through a potential difference of 3750 V. It enters a ...
How the multiple-factor hypothesis accounts for the 1:4:6:4:1 phenotypic ratio How the multiple-factor hypothesis accounts for the 1:4:6:4:1 phenotypic ratio
Video: Metaphase I Animation

For a complete list of videos, visit our video library