A city government adds street lights within its boundaries at a total cost of $300,000. The lights should burn for at least 10 years but can last significantly longer if maintained properly. The city sets up a system to monitor these lights with the goal that 97 percent will be working at any one time. During the year, the city spends $48,000 to clean and repair the lights so that they are working according to the specified conditions. However, it spends another $78,000 to construct lights for several new streets in the city.

a.
Prepare the entries assuming infrastructure assets are capitalized with depreciation recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Government-Wide Financial Statements

b.
Prepare the entries assuming infrastructure assets capitalized with government using the modified approach. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Question

A city government adds street lights within its boundaries at a total cost of $300,000. The lights should burn for at least 10 years but can last significantly longer if maintained properly. The city sets up a system to monitor these lights with the goal that 97 percent will be working at any one time. During the year, the city spends $48,000 to clean and repair the lights so that they are working according to the specified conditions. However, it spends another $78,000 to construct lights for several new streets in the city.

a.	Prepare the entries assuming infrastructure assets are capitalized with depreciation recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Government-Wide Financial Statements

b.	Prepare the entries assuming infrastructure assets capitalized with government using the modified approach. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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A city government adds street lights within its boundaries at a total cost of $300,000. The lights should burn for at least 10 years but

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