Question

Pocahontas School District, an independent public school district, financed the acquisition of a new school bus by signing a note for $105,000 plus interest on the unpaid balance at 6%. Annual principal payments of $35,000, 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 fund financial statements, the appropriate entry in the General Fund at the date of acquisition is

Answer 1

Debit Expenditures $105,000

Credit Other financing sources $105,000.

Step-by-step explanation:

Pocahontas School District Journal entry

Therefore Assuming that the District maintains its books and records in a manner that facilitates the preparation of the fund financial statements, the appropriate entry in the General Fund at the date of acquisition is

Debit Expenditures $105,000

Credit Other financing sources $105,000.

Because Pocahontas School District financed the acquisition of a new school bus by signing a note for $105,000 .