Author Question: A local school district issued a short-term note payable to purchase 500,000 of recreation ... (Read 106 times)

ashley · **on:** Jul 6, 2018

A local school district issued a short-term note payable to purchase 500,000 of recreation equipment. The note will be repaid with General Fund resources. The General Fund would record

A. Debit Expenditures Capital Outlay and credit Due to Bank, for 500,000.
B. Debit Capital Assets and credit Notes Payable, for 500,000.
C. Debit Capital Assets and credit Revenues, for 500,000.
D. Debit Expenditures Capital Outlay and credit Note Payable, for 500,000.

Question 2

The work sheet for a merchandising business is
a. exactly the same as for a service business.
b. very different from that for a service business.
c. slightly different from that for a service business.
d. much shorter than that for a service business.
e. much longer than that for a service business.