Prepare a journal entry for governmental funds and government-wide governmental
ID: 341759 • Letter: P
Question
Prepare a journal entry for governmental funds and government-wide governmental activities for each of the following transactions entered into by the City of Loveland. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Prepare a journal entry for governmental funds and government-wide governmental activities for each of the following transactions entered into by the City of Loveland. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Transaction Fund General Journal Debit Credit 1. The city received a donation of land that is to be used by Parks and Recreation to develop a public park. At the time of the donation, the land had a fair value of $6,000,000 and was recorded on the donor’s books at a historical cost of $5,300,000. 1 General Fund Governmental Activities 2. The Public Works Department sold machinery with a historical cost of $36,300 and accumulated depreciation of $30,200 for $5,800. The machinery had originally been purchased with special revenue funds. 2 General Fund Governmental Activities 3. A car was leased for the mayor’s use. Since the term of the lease exceeded 75 percent of the useful life of the car, the lease was capitalized. The first payment was $1,200 and the present value of the remaining lease payments was $38,000. 3a General Fund 3b Governmental Activities Record the lease of car to the Mayor. 4. During the current year, a capital projects fund completed a new public safety building that was started in the prior year. The total cost of the project was $9,920,000. Financing for the project came from a $9,160,000 bond issue that was sold in the prior year, and from a $760,000 federal capital grant received in the current year. Current year expenditures for the project totaled $1,256,000. The full cost is attributed to the building since it was constructed on city-owned property. 4a Capital Project Fund Record the funds received for the public safety building. 4b Record the current year's expenditure for the public safety building. 4c Governmental Activities Record the funds received for the public safety building. 4d Record the current year's expenditure for the public safety building. 4e Record the transfer of the work in progress to the capital asset. 5. Due to technological developments, the city determined that the service capacity of some of the technology equipment used by general government had been impaired. The calculated impairment loss due to technology obsolescence was $1,236,000. 5 General Fund Governmental ActivitiesExplanation / Answer
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Account Debit Credit 1 General Fund No Entry as no inflow of financial sources Governmental Activities Land 6000000 Program Revenue-Park 6000000 2 General Fund Cash 5800 Other financing sources-capital asset sale 5800 Governmental Activities Cash 5800 Accumulated Dep 30200 Machinery 36000 3 General Fund Expenditure-General Govt 39200 Other financing sources-capital lease 38000 Cash 1200 Governmental Activities Car-Capital Asset 39200 Capital Lease Liability payable 39200 Capital Lease Liability payable 1200 Cash 1200 4 General Fund Cash 760000 Revenue 760000 Construction Expenditure 1256000 Cash 1256000 Governmental Activities Cash 760000 Programme Revenue-public safety 760000 Construction work in process 1256000 Cash 1256000 Building 9920000 Construction work in process 9920000 5 (impairment) General Fund No Entry as no flow of financial sources Governmental Activities Expenses-General Gov 1236000 Technology equipment 1236000