Final answer:
The personal computer and furniture purchased for the City of Lone Pine should be classified as capital assets, totaling $25,000, in the General Fund balance sheet at June 30.
Step-by-step explanation:
The student's question pertains to the classification of expenditures as capital assets on a city's General Fund balance sheet. When a government entity like the City of Lone Pine purchases items of significant value, such as a personal computer and furniture, that are expected to have a useful life of more than one year, these items are usually classified as capital assets. The inclusion of these items as capital assets is critical because it reflects the long-term investments made by the city in assets that provide value over multiple periods.
The personal computer purchased for the city treasurer, valued at $9,000, and the furniture for the mayor's office, valued at $16,000, would both be classified as capital assets, assuming they meet the city's capitalization threshold. Therefore, the combined amount of $25,000 should be recorded as capital assets in the General Fund balance sheet at June 30. It is important for the city to accurately classify and record capital assets to maintain proper financial records and to comply with governmental accounting standards.