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

Question

Quizplus · Accepted Answer

The General Fund would record the short-term note payable as a liability, therefore, the correct entry would be to debit Expenditures - Capital Outlay (which increases the asset account for the recreation equipment) and credit Note Payable (which increases the liability account for the short-term note payable), for $500,000.

A Local School District Issued a Short-Term Note Payable to Purchase