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 Expenditures - Capital Outlay account is used to track the government's spending on capital assets. When the government-wide statements are prepared, the Expenditures - Capital Outlay account is closed out and the balance is transferred to the Capital Assets account.

A Local Government Purchased a Building and Recorded the Event