In which accounting entity may a government report capital ...

[SAVANNAHHOOPER23]

In which accounting entity may a government report capital assets?
 
  A. Capital Projects Fund.
  B. Enterprise Fund.
  C. General Fund.
  D. Agency Fund.

Question 2

Simpson Auto Body Repair purchased 20,000 of machinery. The company paid 8,000 in cash at the time of thepurchase and signed a promissory note for the remainder to be paid in four monthly installments. (a) How will the purchase affect the accounting equation? (b) How will the payment of the first monthly installment affect the accounting equation (ignore interest)?

[Natalie4ever]

Answer to Question 1

B

Answer to Question 2

(a) Increase Total Assets by a net amount of 12,000 (increase Machinery20,000 and decrease Cash 8,000) and increase Liabilities by 12,000 (NotesPayable 12,000)

(b) Decrease Assets by 3,000 (decrease Cash) and decrease Liabilities by3,000 (decrease Notes Payable)

[SAVANNAHHOOPER23]

Thanks for the timely response, appreciate it

[ricroger]

YES! Correct, THANKS for helping me on my review