Author Question: A general government department donates a capital asset with an original cost of 50,000 to an ... (Read 84 times)

shenderson6 · **on:** Jul 5, 2018

A general government department donates a capital asset with an original cost of 50,000 to an Enterprise Fund. The net book value as of the date of donation is 17,500 . The entry that should be recorded by the Enterprise Fund would be

A. A debit to capital assets of 17,500 and a credit to transfer in of 17,500.
B. A debit to capital assets of 50,000 and credits to accumulated depreciation of 32,500 and transfer in of 17,500.
C. A debit to capital assets of 17,500 and a credit to capital contribution of 17,500.
D. A debit to capital assets of 50,000 and credits to accumulated depreciation of 32,500 and capital contribution of 17,500.

Question 2

If the adjustment for accrued salaries at the end of the period is inadvertently omitted, both liabilities and owner's equity will be understated for the period.
a. True
b. False

Indicate whether the statement is true or false