The South City Golf Course purchased a new golf cart for $18,000 in cash at the beginning of the fiscal year. South City accounts for the golf course using an enterprise fund. It plans on using straight-line depreciation for its capital assets. South City expects the cart to last 6 years and have no salvage value.
1. At the time of the cart purchase, the accountant for South City Golf Course will: (select the most correct answer)
a. decrease cash by $18,000 and increase expenses by $18,000.
b. decrease cash by $18,000 and increase equipment assets by $18,000.
c. increase equipment assets by $18,000 and increase net assets by $18,000.
d. NOT record this transaction, as governments do not record longterm assets. 

2. At the end of the fiscal year, the accountant for South City Golf Course will: (select the most correct answer)
a. increase accumulated depreciation by $3,000 and increase expenditures by $3,000.
b. increase accumulated depreciation by $3,000 and increase expenses by $3,000.
c. increase accumulated depreciation by $18,000 and increase expenses by $18,000.
d. NOT be required to record journal entries at this time