Which entries correctly record the purchase of six computers using General Fund resources in the General Fund and in the Governmental Activities column?

• A. General Fund: Expenditures 8,000; Vouchers Payable 8,000. Governmental Activities: Equipment 8,000; Vouchers Payable 8,000.
• B. General Fund: Expenditures 8,000; Cash 8,000. Governmental Activities: Equipment 8,000; Cash 8,000.
• C. General Fund: Expenditures 8,000; Expenditures Payable 8,000. Governmental Activities: Equipment 8,000; Expenditures Payable 8,000.
• D. General Fund: Expenditures 8,000; Vouchers Payable 8,000. Governmental Activities: Cash 8,000; Equipment 8,000.

Answer: (D)

When capital assets are purchased with General Fund resources, the fund records the outlay as an Expenditure and, if not paid immediately, a liability (Vouchers Payable). In the government-wide statements (Governmental Activities), the asset is capitalized and cash is shown as the actual payment (or a payable if not yet paid) as part of the accrual accounting. So for this purchase, the General Fund shows Expenditures 8,000 and a liability of Vouchers Payable 8,000, reflecting the obligation to pay. The Governmental Activities column shows the asset recorded—Equipment 8,000—and the cash outflow—Cash 8,000. This pairing aligns fund-level activity with the government-wide presentation: the outlay is expended from the fund and the asset is added on the government-wide books, with the cash flow reflected accordingly. The other options mix the liability and asset treatment in ways that don’t correspond to how fund and government-wide statements interrelate for capital asset purchases.