Assume that Phillie County maintains a set of books and records in a manner that facilitates the preparation of government-wide financial statements. Phillie County's depreciation policy is to use the straight-line method with no salvage value, and to recognize a full year of depreciation in the year of asset acquisition. Phillie County engaged in the following transactions during 2022, its third year of operations. Using good form, prepare all necessary journal entries to record these transactions in the county's government-wide set of books.

Transactions

a) Paid salaries to County employees, $590,000.

b) Borrowed $540,000 from a local bank in order to finance the acquisition and operation of a building for the use by County administrative officials. The loan matures in 3 years.

c) Paid $610,000 to purchase the building referred to in part "b". The building has an estimated useful life of 10 years.

d) Billed and collected $980,000 of property taxes from residents and local businesses.

e) Sold a parcel of land for $58,000, receiving cash. The parcel of land had been acquired in the previous year for $70,000.

f) The County lost a lawsuit and will have to pay $450,000 two years after year-end.

Using the journal entries prepared in the previous problem (Q #20), using good form, prepare the statement of activities for 2022, and the statement of net position as of December 31, 2022. At the end of 2021, the county had the following account balances: Cash $190,000; Land $210,000; and Net Position $400,000. (Note: you are being asked to prepare the government-wide financial statements.)