What amount should Spruce report for 20X2 claims and judgment expenditures? 1 answer below »

 
   

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadlines.  

Dodd Village received a gift of a new fire engine from a local civic group. The fair value of this fire engine was $400,000. Which of the following is the correct entry to be made in the general fixed assets account group for this gift?

Debit

Credit

a. Memorandum entry only

b. General fund assets

400,000

Private gifts

400,000

c. Investment in general fixed assets

400,000

Gift revenue

400,000

d. Machinery and equipment

400,000

Investment in general fixed assets from private gifts

400,000

10. The following information pertains to Spruce City’s liability for claims and judgments:

Current liability at January 1, 20X2

$100,000

Claims paid during 20X2

800,000

Current liability at December 31, 20X2

140,000

Noncurrent liability at December 31, 20X2

200,000

What amount should Spruce report for 20X2 claims and judgment expenditures?

a. $1,040,000

b. $940,000

c. $840,000

d. $800,000