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A city government adds streetlights within its boundaries at a total cost of $300,000. These lights should burn for at least 10 years but can
A city government adds streetlights within its boundaries at a total cost of $300,000. These lights should burn for at least 10 years but can last significantly longer if maintained properly. The city develops 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. The city also spends another $78,000 to construct lights for several new streets. a. Prepare the entries assuming infrastructure assets are capitalized with depreciation recorded on government-wide financial statements. b. Prepare the entries assuming infrastructure assets are capitalized with government using the modified approach on government-wide financial statements. Complete this question by entering your answers in the tabs below. Required A Required B No Transaction Debit Credit 1 General Journal Infrastructure assets-street lights Cash 300,000 300,000 2 2 Depreciation expense Accumulated depreciationinfrastructure assets 48,000 X 3 3 78,000 Maintenance expenseinfrastructure assets Cash 4 4 37,800 Infrastructure assets-street lights Cash No Transaction Debit Credit 1 1 General Journal Infrastructure assets-street lights Cash N 2. Maintenance expenseinfrastructure assets Cash 3 3 Infrastructure assets-street lights Cash
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