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.)

Transaction Fund / Governmental Activties 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 originally been purchased with special revenue funds. General Fund Governmental Activities

Answer 1

Page 1 Answer: - * from the data- [city of Loveland Debit in $ credit in$ Journal Enteries Trans fund IGA 1. General fund Governmental Activities 5200000 5200000 2. 6000 General fund Do Particulars | No Journal Entry cash al DO To program Revenue - Culture and Recreation capital Grants & contri cash al To other financial source - proceeds of capital sale cash alc Og Accum. Depoe - Mach & Equip alc Do. loss on sale of Machinery a/c Dr. To Machinery and Equipment 6000 alc Government ad Activities 6000 28700 400 35100

Page 2 Journal Enteries Trans / fund IGA: I particulars Debit in $ credit ins 3a General fund Expenditures - General Government al Dx 30000 To other financing sources - Lease agreement 29000 TO Cash 1000 3b Governmental Expenditures - General Government alc do 30000 Activities To lease obligations payable 4a Capital pro-| cash ak o r 1720,000 |-ject fund To Revenues 720000 constouction Expenditures al DP 1176000 TO Cash 1176000 14C Governmental cash al 08 720000 L activities TO Program Revenues, public safety capital 720000 I Grants and contributions 30000

Page 3 Gebit in $ coedit in $ 1176000 4d. DN 11176000 9720000 9720000 Journal Enteries | Trans fund /GA Particulars constouction work in progress al To cash Buildings alc To construction wook in progress 5. General fund No Journal Entry Governmental Depreciation Expense al or Activities To accum. Depre - Buildings 9720000 130 General fund No Journal Entry Governmental Expenses - General Government arc Activities To Machinery Equipment 324000 324000 DO 1156000 1156000