Cartier Village's capital expenditures during the year ended December 31 included: What amounts should have been recorded in the General Fund and enterprise fund for the increase in equipment during the year ended December 31,assuming the electric utility is considered an enterprise fund?

Question

Cartier Village's capital expenditures during the year ended December 31 included:  What amounts should have been recorded in the General Fund and enterprise fund for the increase in equipment during the year ended December 31,assuming the electric utility is considered an enterprise fund?

Quizplus · Accepted Answer

Since the electric utility is an enterprise fund, any capital expenditures related to it should be recorded in the enterprise fund. Therefore, the increase in equipment of $60,000 should be recorded in the enterprise fund. As for the General Fund, no amounts should be recorded since it is not related to the operations of the enterprise fund.

Cartier Village's Capital Expenditures During the Year Ended December 31