A new computer, which had been estimated to cost $28,000, was received. The actual cost of the computer was $29,400. To record this in the special revenue fund,

Question

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The actual cost of the computer was $29,400, so expenditures should be debited for that amount. This will increase the fund balance in the special revenue fund, which can be used for its intended purpose or transferred to another fund as necessary. The General Capital Assets account should not be debited, as this fund is used specifically for the acquisition and maintenance of capital assets, not for recording the cost of purchases.

A New Computer, Which Had Been Estimated to Cost $28,000