Acil Northern Pine The The City of Grinders the preparation of fi to prepare governme worksheet adjustmer Pines las 10 c0mpon us. riders Switch maintains its books in a manner that facilitates of fund accounting statements and uses worksheet adjustments ernment-wide statements. You are to prepare, in journal form, diustments for each of the following situations. fixed assets as of the beginning of the year, which had not been 1. General fixed assets recorded, were as follows: Land $ 7,690,000 Buildings 33,355,000 Improvements Other Than Buildings 14,820,000 Equipment 11,554,000 Accumulated Depreciation, Capital Assets 25,300,000 During the year, expenditures for capital outlays amounted to $7,500,000 Of that amount, $4,800,000 was for buildings; the remainder was for improvements other than buildings. 3. The capital outlay expenditures outlined in (2) were completed at the end of the year (and will begin to be depreciated next year). For purposes of financial statement presentation, all capital assets are depreciated using the straight-line method, with no estimated salvage value. Estimated lives are as follows: buildings, 40 years; improvements other than buildings, 20 years; and equipment, 10 years. 4. In the governmental funds Statement of Revenues, Expenditure Changes in Fund Balances, the City reported proceeds from the sale of land in the amount of $600,000. The land originally cost $505,000. 5. At the beginning of the year, general obligation bonds were outstanding in the amount of $4,000,000. Unamortized bond premium amounted to $18,000. Note: This entry is not covered in the text, but is similar to entry 9 in the chapter. 6. During the year, debt service expenditures for the year amounted to: interest, $580,000; principal, $412,000. For purposes of government- wide statements, $1,800 of the bond premium should be amortized. No adjustment is necessary for interest accrual. 7. At year-end, additional general obligation bonds were issued in the amount of $1,700,000, at par. T. 10 Acil Northern Pine The The City of Grinders the preparation of fi to prepare governme worksheet adjustmer Pines las 10 c0mpon us. riders Switch maintains its books in a manner that facilitates of fund accounting statements and uses worksheet adjustments ernment-wide statements. You are to prepare, in journal form, diustments for each of the following situations. fixed assets as of the beginning of the year, which had not been 1. General fixed assets recorded, were as follows: Land $ 7,690,000 Buildings 33,355,000 Improvements Other Than Buildings 14,820,000 Equipment 11,554,000 Accumulated Depreciation, Capital Assets 25,300,000 During the year, expenditures for capital outlays amounted to $7,500,000 Of that amount, $4,800,000 was for buildings; the remainder was for improvements other than buildings. 3. The capital outlay expenditures outlined in (2) were completed at the end of the year (and will begin to be depreciated next year). For purposes of financial statement presentation, all capital assets are depreciated using the straight-line method, with no estimated salvage value. Estimated lives are as follows: buildings, 40 years; improvements other than buildings, 20 years; and equipment, 10 years. 4. In the governmental funds Statement of Revenues, Expenditure Changes in Fund Balances, the City reported proceeds from the sale of land in the amount of $600,000. The land originally cost $505,000. 5. At the beginning of the year, general obligation bonds were outstanding in the amount of $4,000,000. Unamortized bond premium amounted to $18,000. Note: This entry is not covered in the text, but is similar to entry 9 in the chapter. 6. During the year, debt service expenditures for the year amounted to: interest, $580,000; principal, $412,000. For purposes of government- wide statements, $1,800 of the bond premium should be amortized. No adjustment is necessary for interest accrual. 7. At year-end, additional general obligation bonds were issued in the amount of $1,700,000, at par. T. 10
