The Gotham City Golf Course,an enterprise fund,purchased new furniture for use in the golf pro's office.The debit for the entry to record the event should be to

Question

Quizplus · Accepted Answer

The purchase of furniture for use in the golf pro's office should be recorded as an asset under Furniture and fixtures. It is not a general capital asset since it is not a major acquisition that will provide benefits for multiple years. Additionally, it is not recorded as an expenditure since it is a capitalizable cost that will provide future economic benefits. Purchases would be appropriate if the transaction was for inventory or supplies, which is not the case in this scenario.

The Gotham City Golf Course,an Enterprise Fund,purchased New Furniture for Use