CPA · Question 47 · Area III: State & Local Governments
A City purchased a fire truck for $500,000 cash in the General Fund. <br/>General Fund Entry: DR Expenditures $500,000; CR Cash $500,000.<br/><br/>What adjustment is needed to convert this to the Government-Wide Statement of Net Position?
Answer options:
DR Capital Assets $500,000; CR Net Position $500,000 (eliminate expenditure).
DR Depreciation Expense; CR Accumulated Depreciation.
No adjustment needed.
DR Net Position; CR Expenditures.
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