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Item 2

Item 2 10 points Item Skipped

The City of Grinders Switch maintains its books in a manner that facilitates the preparation of fund accounting statements and uses worksheet adjustments to prepare government-wide statements.

1. General fixed assets as of the beginning of the year, which had not been recorded, were as follows:

Land	$	7,700,000
Buildings		33,398,400
Improvements Other Than Buildings		14,839,400
Equipment		11,569,000
Accumulated Depreciation, Capital Assets		25,333,000

2. During the year, expenditures for capital outlays amounted to $7,510,000. Of that amount, $4,806,400 was for buildings; the remainder was for improvements other than buildings.
3. The capital outlay expenditures outlined in (2) were completed at the end of the year (and will begin to be depreciated next year). For purposes of financial statement presentation, all capital assets are depreciated using the straight-line method, with no estimated salvage value. Estimated lives are as follows: buildings, 40 years; improvements other than buildings, 20 years; and equipment, 10 years.
4. In the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances, the City reported proceeds from the sale of land in the amount of $601,000. The land originally cost $506,000.
5. At the beginning of the year, general obligation bonds were outstanding in the amount of $4,011,000. Unamortized bond premium amounted to $28,000. Note: This entry is not covered in the text, but is similar to entry 9 in the chapter.
6. During the year, debt service expenditures for the year amounted to: interest, $902,000; principal, $640,600. For purposes of government-wide statements, $2,800 of the bond premium should be amortized. No adjustment is necessary for interest accrual.
7. At year-end, additional general obligation bonds were issued in the amount of $2,644,400, at par.

Required:
Prepare the journal form, worksheet adjustments for each of the above situations. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.)

Answer 1

solution I SONO Particulars Debit Gedet Land alc 7700000 Buildings alc 33398400 Improvements other than Bulldings 14839400 Equipment alc 11569000 To accumulated depreciatlor, ' capital assets To Net position 25333000 42173800 354243800 Buildings al 4806400 Improvments other than Buildings 2703 600 To Expendetures-capital outlay 7510000 3. 2733830 834960 74970 Deprecition experse ale To accumulated Depreciation on Buildings (33398400420) To Accumulated Depreciation Improvement other than Building 400/20) To accumulated Depreciation on equipment (11569000/10) Special item proceeds from sale of Land To Land To Special ten on gain from sale of Land 1156900 60.000 506000 95000

Net 4039000 position ak Dr . To Bonds payable To premium on bonds payable 4011000 28000 2800 premium on bonds payable ale To Interest expense 2800 640600 Bonds payable alc To expenditures on principal 640600 7. 7644400 other financing Sources on proceeds - of bondę To bonds payable 8644400