A New Computer, Which Had Been Estimated to Cost $28,000

question 37

Multiple Choice

A new computer, which had been estimated to cost $28,000, was received. The actual cost of the computer was $29,400. To record this in the special revenue fund,

• A) Capital assets should be debited for $29,400.
• B) Expenditures should be debited for $28,000.
• C) Expenditures should be debited for $29,400.
• D) There is no entry in the special revenue fund. The General Capital Assets account should be debited for $28,000.

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Definitions:

Outstanding Checks

Outstanding checks refer to checks that have been written and recorded in the check register but have not been cashed or cleared by the bank yet.

Service Charge

An additional fee charged for services rendered, often added to a bill in restaurants or for banking services.

Adjusted Cash Balance

The final amount of cash available in an account after all adjustments, including deposits, withdrawals, and any interest earned, have been accounted for.

Check Register

A record book or electronic document used to track checks written, deposits made, and current balances in a checking account.