Question

Prepare journal entries 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.) Fund/ Governmental Transaction Activlies 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 an acquisition value of $5.200,000 and was recorded on the donor's books at a historical cost of $4,500,000 General Fund Governmental Activities 2. The Public Works Department sold machinery with a historical cost of $35,100 and accumulated depreciation of $28.700 for $6,000. The machinery had originaly been purchased with special revenue funds. 2 General Fund Governmental Activities 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 $20,000. (Note: The initial cash payment was made by the General Fund.) 3a General Fund 3b Governmental Activities Record the lease of car to the Mayo 4. During the current yeat a captal projects fund completed a new public safety building that was started in the phor year. The total cost of the project was 50.720.000. Financing for the project came from a $9.000.000 bond issue that was sold in the prior year and from a 3720.000 federal capital grant received in the current yeu Current-year expenditures for the project totaled 5.176.000 The full cost is attributed to the building because it was constructed on city-owned property Capital Project Fund Record the funds received for the public safety building

Answer 1

Transaction	Fund / Governmental Activitties	General Journal	Debit	Credit
1	General Fund	No entry as there is no flow offinancial resources
	Governmental Activities	Land	5,200,000
		Program Revenue		5,200,000
2	General Fund	Cash	6,000
		Sale of Capital Asset		6,000
	Governmental Activities	Cash	6,000
		Accumulated Depreciation	28,700
		Loss on Sale of Machinery	400
		Machinery & Equipment		35,100
3a	General Fund	Expenditure - General Government	30,000
		Cash		1,000
		Other Financial Sources		29,000
3b	Governmental Activities	Machinery & Equipment	30,000
		Cash		1,000
		Lease Payable		29,000
4a	Capital Project Fund	Cash	720,000
		Revenue		720,000
4b		Construction Expenditure	1,176,000
		Cash		1,176,000
4c	Governmental Activities	Cash	720,000
		Program Revenues - Public Safety - Capital Grants & Contributions		720,000
4d		Construction Work in Progress	1,176,000
		Cash		1,176,000
4e		Building	9,000,000
		Construction Work in Progress		9,000,000
5		Unable to answer
6	General Fund	No entry as there is no flow of financial resources
	Governmental Activities	Expenses - General Government	1,56,000
		Machinery & Equipment		1,56,000