Capital asset adjustments for government-wide financial statements

Oliver City reported capital assets of $3,225,000 and accumulated depreciation of $1,500,000 in the governmental activities column of its government-wide statement of net position for the year ended December 31, 2021. The total governmental funds column in Olivers calendar year 2022 statement of revenues, expenditures, and changes in fund balances showed that Olivers capital outlay expenditures were $255,000. Oliver Citys director of finance estimated that total depreciation for 2022 was $150,000. Based on the above information, prepare journal entries to adjust Olivers 2022 fund financial statements so government-wide statements can be prepared. Enter accounts in order of magnitude (largest to smallest amounts), debits first. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields.

	Account	Debit	Credit
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	To adjust for beginning balances.
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	To adjust for capital outlay expenditures
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	To record 2022 depreciation.