During the fiscal year ended June 30, 20X3, an enterprise fund of New Spring acquired computer equipment costing $280,000 on account and issued $600,000 of long-term bonds at par value. Revenues of the enterprise fund will be used to repay bond interest and principal. What effect did these transactions have on New Spring's enterprise fund assets and long-term debt? AssetsLong-Term DebtA.Increase of $880,000Increase of $600,000B.Increase of $280,000Increase of $600,000C.Increase of $880,000No effectD.Increase of $600,000Increase of $600,000

A. Option A
B. Option B
C. Option C
D. Option D


Answer: A

Business

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