Prepare a journal entry for govemmental funds and govemment wide govemmental act

Question

Prepare a journal entry for govemmental funds and govemment wide govemmental activities for each of the following transactions entered into by the City of Loveland (if no entry is required for a transactionlevent, select "No Journal Entry Required" in the first account field.) Fuad Debit Credit 1. The city received a donation of land that is to be used by Parks and Recreation to dev a fair value of $5,900,000 and was recorded on the donor's books at a historical cost of $5,200,000 elop a public park. At the time of the donation, the land had General Fund Govemmental Activities t sold machinery with a historical cost of $36,150 and accumulated depreciation of $30,000 for $5,825 The with special nevenue funds General Fund Governmental Activities Since the tem of the lease exceeded 75 percent of the useful life of the car, the lease was capitalized 3 first payment was $1,1 t was $1,10 0 and the present value of the rem aining lease poyments was $37 000 3a General Fund

Explanation / Answer

Answer: Journal Entries

Sl. No. Particulars Debit   Credit 1 General Fund: There would be no entry since there is no flow of financial resources Governmental Activities: Land    5,900,000 Program Revenue – Parks and Recreation    5,900,000 2 General Fund: Cash            5,825 Accumulated Depreciation          30,000 Loss on sale of asset                325 Machinery and Equipment          36,150 3a General Fund: Expenditures - General Govt (37,000+1,100)          38,100 Other Financing Sources - Capital Lease Agreements          37,000 Cash            1,100 3b Governmental Activities: Car          38,100 Capital Lease Obligations Payable          38,100 Capital Lease Obligations Payable            1,100 Cash            1,100 4a Capital Projects Fund: Revenue       755,000 cash       755,000 4b Construction Expenditures    1,246,000 cash    1,246,000 4c Governmental Activities: Cash       755,000 Program Revenue – Public Safety – Capital Grants & Contributions       755,000 4d Construction work in progress    1,246,000 Cash    1,246,000 4e Buildings    9,895,000 Construction work in progress    9,895,000 5 General Fund: There would be no entry since there is no flow of financial resources Governmental Activities: Expenses - General Government    1,226,000 Technology Equipment    1,226,000

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