3. A car was leased for the mayor's use. The first payment was $1,200 and the present value of the remaining lease payments was $22,000. (Note: The initial cash payment was made by the General Fund.) General Fund Expenditures-General Government Other Financing SourcesLease Agreements Cash 3b Governmental Activities Record the lease of car to the Mayor. Leased Asset-Machinery and Equipment Lease Obligations Payable Cash 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 $9,545,000. Financing for the project came from a $8,860,000 bond issue that was sold in the prior year and from a $685,000 federal capital grant received in the current year. Current-year expenditures for the project totaled $1,106,000. The full cost is attributed to the building because it was constructed on city-owned property. 4a Capital Project Fund Record the funds received for the public safety building. 4b Record the current year's expenditure for the public safety building. 4c Governmental Activities Record the funds received for the public safety building. Governmental Activities Record the funds received for the public safety building. Record the current year's expenditure for the public safety building. Record the transfer of the work in progress to the capital asset. 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. 5 General Fund Governmental Activities 6. Due to technological developments, the city determined that the service capacity of some of the technology equipment used by general government had been impaired. The calculated impairment loss due to technology obsolescence was $1,086,000. 6 General Fund Governmental Activities 3. A car was leased for the mayor's use. The first payment was $1,200 and the present value of the remaining lease payments was $22,000. (Note: The initial cash payment was made by the General Fund.) General Fund Expenditures-General Government Other Financing SourcesLease Agreements Cash 3b Governmental Activities Record the lease of car to the Mayor. Leased Asset-Machinery and Equipment Lease Obligations Payable Cash 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 $9,545,000. Financing for the project came from a $8,860,000 bond issue that was sold in the prior year and from a $685,000 federal capital grant received in the current year. Current-year expenditures for the project totaled $1,106,000. The full cost is attributed to the building because it was constructed on city-owned property. 4a Capital Project Fund Record the funds received for the public safety building. 4b Record the current year's expenditure for the public safety building. 4c Governmental Activities Record the funds received for the public safety building. Governmental Activities Record the funds received for the public safety building. Record the current year's expenditure for the public safety building. Record the transfer of the work in progress to the capital asset. 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. 5 General Fund Governmental Activities 6. Due to technological developments, the city determined that the service capacity of some of the technology equipment used by general government had been impaired. The calculated impairment loss due to technology obsolescence was $1,086,000. 6 General Fund Governmental Activities