Question

5 18. General Capital Assets 5 Make all recessary entries in the appropriate govermen al fund 뜬eneral Journal and the govellnent wide gover nental activities general Journal for each ofthe following transactions entered into by the City of Loveland. . The city received a donation ofland that is to be used by Parks and Recreation to develop a public park. At the time of the donation, the land had an acquisition value of $5,200,000 and was recorded on the donor's books at a historical cost of $4,500.000 2. The Public Works Department sold machinery with a historical cost of S35,100 and accumulated depreciation of S28,700 for $6,000. The machinery had originally been purchased with special revenue 3. A car was leased for the mayor's use. The first payment was $1,000 and the present value of the remaining lease payments was S29,000. (Note: The initial cash payment was made by the General Fund.) 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 S9,720,000. Financing for the project Page 206 came from a S9,000,000 bond issue that was sold in the prior year and fro a $720,000 federal capital grant received in the current year. Current-year expenditures for the project totaled $1,176,000. The full cost is attributed to the building because it was constructed on city-owned property. 5. The city records a half year of straight-line depreciation on capital assets placed in service during the year. The building in item 4 above has an estimated 30-year life and no salvage value. 6. Due to technological developments, the city determined that the service capacity of some of the technology equipment used by general govement had been impaired. The calculated impairment loss due to technology obsolescence was S1,156.000.

Answer 1

Answer -

Transaction	Fund	General journal	Debit ($)	Credit ($)
1.	General Fund	There would be no entry since there is no flow of financial resources.	-	-
	Governmental Activities	Land Program Revenues--Culture and Recreation Capital Grants and Contributions	5200000 -	- 5200000
2.	General Fund	Cash Other Financing Sources--Proceeds of Capital Asset Sale	6000 -	- 6000
	Governmental Activities	Accumulated Depreciation Cash Loss on Sale of Machinery Machinery and Equipment	28700 6000 400 -	- - - 35100
3.	General Fund	Expenditures -- General Government Other Financing Sources--Capital Lease Agreements Cash	30000 - -	- 29000 1000
	Governmental Activities	Machinery and Equipment Capital Lease Obligations Payable Cash	30000 - -	- 29000 1000
4.	Capital Project Fund	Cash Revenues	720000 -	- 720000
		Construction Expenditures Cash	1176000 -	- 1176000
	Governmental Activities	Cash Program Revenues--Public Safety--Capital Grants and Contributions	720000 -	- 720000
		Construction Work in Progress Cash	1176000 -	- 1176000
		Buildings Construction Work in Progress	9720000 -	- 9720000
5.	General Fund	No Journal Entry Required
	Governmental Activities	Depreciation expenses--Building [($9720000/30 years)/2] Accumulated Depreciation--Building	162000 -	- 162000
6.	General Fund	No Journal Entry Required
	Governmental Activities	Expenses--General Government Machinery and Equipment	1156000 -	- 1156000