Accounting Assignment

. Information in the CAFR of the Town of Lynnwood reported general capital assets in the following amounts as of April 30, 2007. Accumulated Cost Depreciation Land $1,326, 780 Buildings 7,282.680 .439,200 Improvements other than buildings 3,027.790 922,600 Equipment 1,733,820 837,500 Construction work in progress 401, 130 Infrastructure assets 3,500,000 1,000,000 took place: During the fiscal year (FY) 2008, the following changes in general capital assets 1. A project started during FY 2008 was being financed by a tax-supported bond issue of $3,000,000 sold at par during the year and a federal grant of $1,000.000. By the end of FY 2008, $80,000 of the federal grant had been re- ceived and expended for planning and engineering for a project in progress. Bond proceeds expended during the year totaled $900.000 ($300,000 for land and $600,000 for the building under construction). . Records of capital projects funds reported that construction work in progress at the end of FY 2007 was completed during FY 2008 at a total cost of $799.066, which included an additional cost of $397,936 in the current period. All of the construction resulted in additions to the Improvements Other than Buildings account. $152,700. Special revenue fund expenditures during the year added equipment costing $438,000. General Fund expenditures during the year for equipment amounted to Annexation added buildings for which the estimated cost was $301.600 and land for which the estimated cost was $75,000. 5. Land having an appraised value of $750,000 was donated to the city, and ad- ditional land with an appraised value of $15,000 was received in settlement of delinquent General Fund property taxes 7. Land acquired at an estimated cost of $12,000 on which an $80,000 building was located was sold to the State Highway Department for a right-of-way at a price of $1 19,700.Bond proceeds expended during the your totaled $900.000 ($300,000 for land and $600,000 for the building under construction) 2. Records of capital projects funds reported that construction work in progress at the end of FY 2007 was completed during FY 2008 at a total cost of $799,066, which included an additional cost of $397,936 in the current period. All of the construction resulted in additions to the Improvements Other than Buildings account. 3. Special revenue fund expenditures during the year added equipment costing $152,700. I. General Fund expenditures during the year for equipment amounted to $438,000. 5. Annexation added buildings for which the estimated cost was $301,600 and land for which the estimated cost was $75,000. 6. Land having an appraised value of $750,000 was donated to the city, and ad- ditional land with an appraised value of $15,000 was received in settlement of delinquent General Fund property taxes. 7. Land acquired at an estimated cost of $12,000 on which an $80,000 building was located was sold to the State Highway Department for a right-of-way at a price of $1 19,700. 3. Construction activities during FY 2008 required demolition of a building that had cost $33,600 and a bridge (infrastructure) for which the estimated cost was $1 19,200. Equipment that had cost $20,000 could not be located and was pre- sumed to have been stolen. 9. No additions of infrastructure assets occurred this year. 10. Depreciation expense for the year was as follows: buildings $440,000; im- provements, $320,000; equipment $210,000: and infrastructure ass $105,000. Accumulated depreciation related to retired assets was buildings. $51.000; improvements. $102,000; and equipment. $5,000 Required Prepare in good form a schedule of capital asset disclosures, for governmental activities similar to Illustration 5-2 for the fiscal year ended April the related schedule showing how current depreciation expense is charged to gov- Do. ignore ernmental functions.Chapter 5 Accounting for General Capital Assets and Capital Projects 175 ILLUSTRATION 5-2 Illustrative Capital Assets Disclosure CITY AND COUNTY OF DENVER, COLORADO Capital Assets Disclosure for the Year Ended December 31, 2016 Capital Asset Activity for the Year Ended December 31, 2016 (in Thousands): Primary Government January 1 Additions Deletions Transfers December 31 Governmental Activities: Capital assets not being depreciated: Land and land rights Construction in progress $ 310,331 $ 23,253 $ (4,723) $ 328,861 Total capital assets not being depreciated 51,913 99,506 (12,309) (41,325) 97,785 362,244 122,759 (17,032) (41,325) 426,646 Capital assets being depreciated: Buildings and improvements Equipment and other 2,398,875 3,910 (24, 199) 17,529 2,396,115 Collections 320,967 29,390 (27,782) 322,575 Intangibleso javawgila 42,300 6,483 (4,690) 388 44,481 Infrastructure 35,035 1 ,368 (2, 197) 2,455 36,661 Total capital assets being depreciated 1,536,665 37,999 (29) 20,953 1,595,588 4,333,842 79,150 (58,897) 41,325 4,395,420 Less accumulated depreciation for: Buildings and improvements Equipment and other (785,349) (63,644) 10,845 (838,148) Collections (239,464) (23,770) 26,938 (236,296) Intangibles (21,696) (5,534) 4,660 (22,370) Infrastructure (28,554 ) (4, 195) 1,089 (31,660) 29 (800,912) Total accumulated depreciation (755,694) (45,247) Total capital assets being depreciated, net (1,830,757) (142, 190) 43,561 (1,929,386) 2,503,085 41,325 2,466,034 Governmental Activities Capital Assets, net (63,040) (15,336) $2,865,329 $ 59,719 $(32,368) $ $2,892,680 Business-type Activities: Capital assets not being depreciated: Land and land rights $ 327,700 666 $ $ 4,517 $ 332,883 Construction in progress 551, 454 263, 191 (1,510) (608,255) 204,880 Total capital assets not being depreciated 879, 154 263,857 (1,510) (603,738) 537,763 Capital assets being depreciated: Buildings and improvements 2,345, 672 (23,562) 476,474 2,798,584 Improvements other than buildings 3,242,359 22,932 (17,916) 91,013 3,338,388 Machinery and equipment 837,895 15,074 (9,031) 36, 251 880,189 Intangibles 6, 125 6,125 Total capital assets being depreciated 6,432,051 38,006 (50,509) 603,738 7,023,286 Less accumulated depreciation for: Buildings and improvements (1,127,084) (73,315) 12,206 (1,188, 193) Improvements other than buildings (1,371,617) (88, 722) 10,933 (1,449,406) Machinery and equipment (726,839 (36,623 8,217 (755,245) Intangibles (3,981 ) (613) (4,594) Total accumulated depreciation (3,229,521) (199,273) 31,356 (3,397,438) Total capital assets being depreciated, net 3,202,530 (161,267) (19,153) 603,738 3,625,848 Business-type Activities Capital Assets, net $4,081,684 $102,590 $(20,663) $ $4,163,611 Note: Interest costs of $51,778 were capitalized during 2016. continued