Pocahontas School District, an independent public school district, financed the acquisition of a new school bus by signing a note for $90,000 plus interest on the unpaid balance at 6%. Annual principal payments of $30,000, plus interest, are due each July 1. Assuming that the District maintains its books and records in a manner that facilitates the preparation of the government-wide financial statements, the appropriate entry at the date of acquisition is a. Debit Expenditures $90,000; Credit Notes Payable $90,000. b. Debit Fixed Assets $90,000; Credit Notes Payable $90,000.
1. Pocahontas School District, an independent public school district, financed the acquisition of a new school bus by signing a note for $90,000 plus interest on the unpaid balance at 6%. Annual principal payments of $30,000, plus interest, are due each July 1. Assuming that the District maintains its books and records in a manner that facilitates the preparation of the government-wide financial statements, the appropriate entry at the date of acquisition is
a. Debit Expenditures $90,000; Credit Notes Payable $90,000.
b. Debit Fixed Assets $90,000; Credit Notes Payable $90,000.
c. Debit Expenditures $90,000; Credit Other Financing Sources $90,000.
d. Debit Fixed Assets $90,000; Credit Other Financing Sources $90,000.
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