A local government purchased a building and recorded the event by debiting Expenditures - Capital Outlay and crediting Cash. What would be the worksheet entry to prepare the government-wide statements?

Question

Quizplus · Accepted Answer

The purchase of a capital asset is recorded as a debit to Capital Assets and a credit to Cash. The worksheet entry to prepare the government-wide statements would be to debit Capital Assets and credit Expenditures - Capital Outlay.

A Local Government Purchased a Building and Recorded the Event