Pocahontas School District, an Independent Public School District, Financed the Acquisition

Multiple Choice

Pocahontas School District, an independent public school district, financed the acquisition of a new school bus by signing a note for $90,000 plus interest on the unpaid balance at 6%.Annual principal payment of $30,000, plus interest, are due each July 1.Assuming that the District maintains its books and records in a manner that facilitates the preparation of the fund financial statements, the appropriate entry in the General Fund at the date of acquisition is

A) Debit Expenditures $90,000; Credit Notes Payable $90,000.
B) Debit Fixed Assets $90,000; Credit Notes Payable $90,000.
C) Debit Expenditures $90,000; Credit Other Financing Sources $90,000.
D) Debit Fixed Assets $90,000; Credit Other Financing Sources $90,000.