On July 1, Gilbert County Bought Computer Equipment for Use

question 73

Multiple Choice

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. The 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 $85,000 cost of this equipment would require which of the following entries?

• A) Debit Expenditures $85,000; Credit Cash $85,000.
• B) Debit Equipment $85,000; Credit Cash $85,000.
• C) Debit Expenses $85,000; Credit Cash $85,000.
• D) No entry in the city's governmental funds.

---

Definitions:

Health Care System

An organized framework that delivers medical care services to the population, involving institutions, policies, and resources.

Voluntary Early Retirement

A program offered by some organizations allowing employees to retire early with benefits, often as a cost-saving measure.

Zero Population Growth

A demographic balance where the number of people in a specified population neither grows nor declines, due to the birth rate equaling the death rate.

Demographic Transition Model

A concept explaining how countries or regions experience a decline in both birth and death rates when transitioning from a pre-industrial stage to an industrial economic system.