During the fiscal year ended June 30,2009,an enterprise fund of St.Cloud acquired computer equipment costing $110,000 on account and issued $400,000 of long-term bonds.Revenues of the enterprise fund will be used to repay bond interest and principal.What effect did these transactions have on St.Cloud's enterprise fund assets and long-term debt?

Question

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The acquisition of computer equipment increases the enterprise fund's assets by $110,000. Issuing $400,000 of long-term bonds increases the enterprise fund's long-term debt by $400,000.

During the Fiscal Year Ended June 30,2009,an Enterprise Fund of St.Cloud