Answer:
A credit to Encumbrance Control
Explanation:
In the case when the journal entry is the general fund is recorded and when we have to record the actual expenditure and the reversal of the attached encumbrance so here the encumbrance control should be credited as we have to record the actual expenditure that have incurred also the reversal of attached encumbrance so this account should be credited
A budget surplus of $7
<h3>What is a budget surplus's opposite?</h3>
A budget deficit is the polar opposite of a budget surplus. If a company (or government) has a budget deficit, it signifies that over the given timeframe, it spent more money than it brought in. A business's budget deficit could necessitate a budget reform for the upcoming fiscal year, even though a budget deficit for the government is not always negative for spending.
<h3>What does the term "surplus" mean?</h3>
A surplus is a sign that the government is being run efficiently. When government income is higher than government expenditures for a specific time period, typically a fiscal year, there is a surplus, which is a positive number.
<h3>How is inflation caused by a budget surplus?</h3>
Nevertheless, inflationary pressures can also exist when the economy is struggling. In essence, a rise in the money supply is what causes inflation. In light of the foregoing, a budget surplus will drain funds from the economy, hence lowering the money supply and fostering a deflationary environment.
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Answer:
$5,681
Explanation:
As this is a residential property the Modified Accelerated Cost Recovery System (MACRS) depreciation rate is applicable.
Also as it was sold during the month, the mid month convention is also in effect which states that when an asset is sold during the month, only 15 days of that month are considered for depreciation assuming a 30 day month.
The straight line rate for MACRS after the first year for this residential property is 3.636% per annum.
The asset didn't last the entire year so this needs to be accounted for.
Out of 12 months it lasted 7 months till July and 15 days in August which means it lasted 7.5/12 of the year.
Depreciation for the year is, therefore,
= 250,000 * 3.636% * 7.5/12
= $5,681
