Author Question: Nathan Township's General Fund transfers three vehicles to the Internal Service Fund. The vehicles, ... (Read 101 times)

mwit1967 · **on:** Jul 5, 2018

Nathan Township's General Fund transfers three vehicles to the Internal Service Fund. The vehicles, which have a useful life of five years, are transferred at the end of their fourth year. The original cost for all three vehicles totaled 75,000 .

The entry in the Internal Service Fund would be
Debit Credit
A. Vehicles
Accumulated Depreciation Vehicles
Net Investment in Capital Assets 75,000
60,000
15,000
B. Vehicles
Accumulated Depreciation Vehicles
Capital Contributions 75,000
60,000
15,000
C. Vehicles
Capital Contributions 15,000
15,000
D. Vehicles
Accumulated Depreciation Vehicles
Transfer from General Fund 75,000
60,000
15,000

Question 2

Jason purchased office equipment for 4,800 in cash. This transaction would
a. increase assets and increase owner's equity.
b. increase assets and increase liabilities.
c. increase one asset and decrease another asset.
d. decrease assets and decrease liabilities.