5-6 Your city borrows $50,000 (notes payable) to purchase...
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Accounting
5-6
Your city borrows $50,000 (notes payable) to purchase an asset and pays $40,000 in cash for use in its overall general purpose. What should be the CREDIT entry reported in the general fund? Assume that this asset was properly budgeted this year. a. $40,000 in cash and $50,000 in notes payable b. $50,000 in cash and $40,000 in other financing sources - debt c. $40,000 in cash and $50,000 in other financing sources - debt d. $50,000 in cash and $40,000 in notes payable e. $90,000 cash In its fund statements a government should recognize revenue from special assessments: a. in the years in which the assessments are paid b. entirely in the year in which the assessments are imposed c. in the years in which the assessments are due d. all of the answers are accurate depending on disclosures made in the notes to financial statements e. in the years in which the assessments become available for expenditure
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