The General Fund used electricity provided by the city-owned electric utility (an enterprise fund of the city). The General Fund general journal entry to record the transaction will include:

Question

Quizplus · Accepted Answer

The General Fund used electricity from the city-owned electric utility, which is considered an expenditure, and thus requires a debit to the Expenditures account. The other choices are not applicable in this transaction. A debit to Expenses would be used for transactions such as paying for office supplies, a debit to Interfund Transfers Out would be used for transferring funds to another fund, and a debit to Due to Other Funds is used when a fund owes money to another fund.

The General Fund Used Electricity Provided by the City-Owned Electric