A Local School District Issued a Short-Term Note Payable to Purchase

Multiple Choice

A local school district issued a short-term note payable to purchase $500,000 of recreation equipment. The note will be repaid with General Fund resources. The General Fund would record

A) Debit Expenditures - Capital Outlay and credit Due to Bank, for $500,000.
B) Debit Capital Assets and credit Notes Payable, for $500,000.
C) Debit Capital Assets and credit Revenues, for $500,000.
D) Debit Expenditures - Capital Outlay and credit Note Payable, for $500,000.