Business, 26.10.2021 21:40 sbanoali6120

Star City leased a bulldozer for use in activities accounted for in the general fund. The city paid $40,000 and agreed to pay $40,000 per year for 3 years. The bulldozer has a useful life of six years. The lease qualified as a capital lease. Assuming that the city maintains is books and records in a manner that facilitates the preparation of the government-wide financial statements, the appropriate entry at the date of acquisition would be: a. Debit Expenditures $120,000; Credit Cash $30,000 and Other Financing Sources $90,000.
b. Debit Expenditures $40,000 and Prepaid Lease $80,000; Credit Cash $30,000 and Other Financing Sources $90,000.
c. Debit Equipment $120,000; Credit Cash $30,000 and Lease Payable $90,000.
d. Debit Expenditures $120,000; Credit Cash $30,000 and Lease Payable $90,000.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 01:50

You are an employee of an u.s. firm that produces personal computers in thailand and then exports them to the united states and other countries for sale. the personal computers were originally produced in thailand to take advantage of relatively low labor costs and a skilled workforce. other possible locations considered at that time were malaysia and hong kong. the u.s. government decides to impose punitive 100% ad valorem tariffs on imports of computers from thailand to punish the country for administrative trade barriers that restrict u.s. exports to thailand. how do you think your firm should respond? what does this tell you about the use of targeted trade barriers?

Answers: 3

Answer

Business, 22.06.2019 08:30

What is the equity method balance in the investment in lindman account at the end of 2018?

Answers: 2

Answer

Business, 22.06.2019 10:10

True tomato inc. makes organic ketchup. to promote its products, this firm decided to make bottles in the shape of tomatoes. to accomplish this, true tomato worked with its bottle manufacture to create a set of unique molds for its bottles. which of the following specialized assets does this example demonstrate? (a) site specificity (b) research specificity (c) physical-asset specificity (d) human-asset specificity

Answers: 3

Answer

Business, 22.06.2019 11:00

What is the advantage of developing criteria for assessing the effectiveness of business products and processes? a. assessment criteria are answers. b.assessment criteria are inexpensive. c.assessment criteria provide you with a list of relevant things to measure. d.assessment criteria provide you with a list of people to contact to learn more about process mentoring.

Answers: 3

Answer

You know the right answer?

Star City leased a bulldozer for use in activities accounted for in the general fund. The city paid...

Questions