South City Golf Course purchased a new golf cart for $18,000 in cash. They plan

Question

South City Golf Course purchased a new golf cart for $18,000 in cash. They plan to use the straight line depreciation method. North City expects the cart to last 6 years and have no salvage value. The accountant will record the golf cart purchase:
1)
A. decrease cash by $18,000 and increase expense by $18,000
B. decrease cash by $18,000 and increase equipment by $18,000

C. increase equipment assets by $18,000 and increase net assets by $18,000

2)

At the end of the Fiscal year, the accountant for South City Golf course will

a) Increase accumulated depreciation by 3000 and increase expenditures by 3000

b. increase accumulation depreciation by 3000 and increase expenses by 3000

c) increase accumulated depreciation by 18000 and increase expenses by 18000

d) not be required to record journal enties at this time.

Explanation / Answer

decrease cash by $18,000 and increase equipment by $18,000

2)increase accumulated depreciation by $3,000 and increase expenses by $3,000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.