Question
1) Please do journal entries for affected funds. 2) Indicate how the transaction impact Fund Balance or Net Position. Please be specific. When indicate the
1) Please do journal entries for affected funds.
2) Indicate how the transaction impact Fund Balance or Net Position. Please be specific. When indicate the impact, please point out exactly which category it impacted. Such as FB-SPENDABLE-unassigned, or assigned, or committed, or restricted. Or FB-NONSPENDABLE. For net position, it would be restricted, unrestricted, or investment in capital asset. General fund in 1 Is an example.
3)For governmental wide level, you also need to indicate which activity it affects (business activity or governmental activity).
REQUIREMENT: Use the information below to calculate the amount of expense and the liability to be recognized | |||||||
at year-end for Sludge City as related to their sold waste municipal landfill as of the end of the first three years of operation. | |||||||
Total estimated cost of closure/postclosure expense at year-end: | |||||||
Year1=18,550,000 | Year2=20,300,000 | Year3=21,800,000 | |||||
Total amount of landfill used at year end (cumulative). (such as year3=1617000 is the total amount used for 3 years) | |||||||
Year1=588,000 cubic feet | |||||||
year2=1,274,000 cubic feet | |||||||
year3=1,617,000 cubic feet | |||||||
Anticipated landfill capacity throughout first three years=4900,000 cubic feet | |||||||
Closure costs paid at the end of year 2=800,000 | |||||||
Closure costs paid at the end of year 3=950,000 | |||||||
Year 1 | Expense: | ||||||
Liability: | |||||||
Year 2 | Expense: | ||||||
Liability: | |||||||
Year 3 | Expense: | ||||||
Liability: | |||||||
Hint: expense=(landfill used at year end/anticipated landfill capacity)*estimated cost of closure expense at year end-previously recognized expense. | |||||||
Liability=total expense incurred to date-paid off portion |
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