On July 1, Gilbert County bought computer equipment for use in the administrative offices of the County. The equipment has an estimated useful life of three years and salvage of $10,000. Gilbert County has a 6/30 fiscal year-end. Assuming that the County maintains its books and records in a manner that facilitates the preparation of fund financial statements, the $70,000 cost of this equipment would require which of the following entries? a. Debit Expenditures $70,000; Credit Cash $70,000. b. Debit Equipment $70,000; Credit Cash $70,000. c. Debit Expenses $70,000; Credit Cash $70,000. d. No entry in the City s governmental funds.
1. On July 1, Gilbert County bought computer equipment for use in the administrative offices of the County. The equipment has an estimated useful life of three years and salvage of $10,000. Gilbert County has a 6/30 fiscal year-end. Assuming that the County maintains its books and records in a manner that facilitates the preparation of fund financial statements, the $70,000 cost of this equipment would require which of the following entries?
a. Debit Expenditures $70,000; Credit Cash $70,000.
b. Debit Equipment $70,000; Credit Cash $70,000.
c. Debit Expenses $70,000; Credit Cash $70,000.
d. No entry in the City s governmental funds.
2.
On July 1, Gilbert County bought computer equipment for use in the administrative offices of the County. The equipment has an estimated useful life of three years and salvage of $10,000. Gilbert County has a 6/30 fiscal year-end. Assuming that the County maintains its books and records in a manner that facilitates the preparation of government-wide financial statements, the $70,000 cost of this equipment would require which of the following entries?
a. Debit Expenditures $70,000; Credit Cash $70,000.
b. Debit Equipment $70,000; Credit Cash $70,000.
c. Debit Expenses $70,000; Credit Cash $70,000.
d. No entry is required.
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