During the fiscal year ended June 30,20X9,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

Quizplus · Accepted Answer

The acquisition of computer equipment on account would increase the asset balance of the enterprise fund by $110,000. The issuance of long-term bonds would increase the long-term debt balance of the enterprise fund by $400,000. Therefore, the correct answer choice is option C, which shows an increase of $110,000 in assets and an increase of $400,000 in long-term debt.

During the Fiscal Year Ended June 30,20X9,an Enterprise Fund of St.Cloud