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 accounted for in 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 accounted for in an enterprise fund?

Quizplus · Accepted Answer

The electric utility is accounted for in an enterprise fund, so the increase in equipment should be recorded in the enterprise fund. Therefore, the General Fund should not have any recorded amount for the increase in equipment. The capital expenditures for equipment totaled $60,000, which should have been recorded in the enterprise fund. Therefore, the correct answer is Choice B.

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