41. The parking garage and parking lots owned by the City of Danton reported
the following balances for 2011:
Required:
What amount of net revenue (or expense) should be reported by the fund that
was used to account for parking operations assuming the preparation of
government-wide financial statements?
42. The City of Nextville operates a motor pool serving all city-owned vehicles.
The motor pool bought a new garage by paying $29,000 in cash and signing a
note with the local bank for $280,000. Subsequently, the motor pool performed
work for the police department at a cost of $17,000, which had not yet been
collected. Depreciation on the garage amounted to $20,000. The first $12,000
payment made on the note included $4,800 in interest.
Required:
Prepare the journal entries for these transactions that are necessary to prepare
government-wide financial statements.
43. The City of Kamen maintains a collection of paintings of a former citizen in
its City Hall building. During the year, one painting was purchased by the city for
$2,000 at an auction using appropriated funds in the General Fund. Also during
the year, a donation of a painting valued at $3,000 was made to the city.
Required:
Prepare the journal entry/entries for the two transactions for the purposes of
preparing the fund financial statements.
44. The City of Kamen maintains a collection of paintings of a former citizen in
its City Hall building. During the year, one painting was purchased by the city for
$2,000 at an auction using appropriated funds in the General Fund. Also during
the year, a donation of a painting valued at $3,000 was made to the city and the
city has appropriately decided to record this painting as an asset.
Required:
Prepare the journal entry/entries for the two transactions for the purposes of
preparing the government-wide financial statements.
45. The Town of Wakefield opened a solid waste landfill in 2010 that was at
20% capacity on December 31, 2010 and at 50% capacity on December 31, 2011.
The city initially anticipated closure costs of $2.3 million but in 2011 revised the
estimate of the closure costs to be $2.7 million. None of these costs will be
incurred until the landfill is scheduled to be closed.
What is the journal entry that should be recorded on December 31, 2011 for
Government-wide Financial Statements?
46. The Town of Wakefield opened a solid waste landfill in 2010 that was at
20% capacity on December 31, 2010 and at 50% capacity on December 31, 2011.
The city initially anticipated closure costs of $2.3 million but in 2011 revised the
estimate of the closure costs to be $2.7 million. None of these costs will be
incurred until the landfill is scheduled to be closed.
Assuming the landfill is recorded within the General fund, what is the journal
entry that should be recorded in the Fund Financial Statements on December 31,
2011?
47. Marie Todd works for the City of Rochester and volunteered to work the
New Years Eve holiday in December, 2010. In exchange for working the holiday,
the city will grant her 2 vacation days compensated at $500 per day. Marie
decided to take these vacation days during January, 2011.
For Government-wide financial statements, what are the journal entries to record
these events in 2010 and in 2011?
48. Marie Todd works for the City of Rochester and volunteered to work the
New Years Eve holiday in December, 2010. In exchange for working the holiday,
the city will grant her 2 vacation days compensated at $500 per day. Marie
decided to take these vacation days during January, 2011.
Assuming that Marie works in an activity reported within the General fund, for
Fund financial statements, what are the journal entries to record these events?
49. The Town of Portsmouth has at the beginning of the year a $213,000 Net
Asset balance, and a $52,000 Fund Balance.
The following information relates to the activities within the Town of Portsmouth
for the year of 2011.
50. The Town of Portsmouth has at the beginning of the year a $213,000 Net
Asset balance, and a $52,000 Fund Balance.
The following information relates to the activities within the Town of Portsmouth
for the year of 2011.
51. The Town of Portsmouth has at the beginning of the year a $213,000 Net
Asset balance, and a $52,000 Fund Balance.
The following information relates to the activities within the Town of Portsmouth
for the year of 2011.
