The following items were included in the City of Wilson's General Fund expenditures for the year ended June 30, 2017:
$\begin{array}{llcc}
\text {Computer for City Clerk } & \$3,000\
\text { Maintenance on heating units for City Hall }&\$9,000
\end{array}$

How much should be classified as capital assets in Wilson's General Fund balance sheet at June 30, 2017?

Question

The following items were included in the City of Wilson's General Fund expenditures for the year ended June 30, 2017:
$\begin{array}{llcc}
  \text {Computer for City Clerk  } & \$3,000\
\text { Maintenance on heating units for City Hall }&\$9,000
\end{array}$

How much should be classified as capital assets in Wilson's General Fund balance sheet at June 30, 2017?

Quizplus · Accepted Answer

In governmental accounting, capital assets are typically long-term assets that provide benefits over multiple periods. The computer for the City Clerk, costing $3,000, does not meet the threshold for capitalization as a capital asset in the General Fund. Maintenance expenses are not capitalized. Therefore, $0 should be classified as capital assets.