Capital Asset Transactions

Suppose the City of Naperville, Illinois acquired the following capital assets in 2020:

1. Land infrastructure improvements were paid by the general fund at a cost of $2,400,000.

2. A used delivery van was purchased by the internal service fund at a cost of $10,000.

3. A building was purchased for $20,000,000 by the capital projects fund to serve as a youth center. The purchase was financed by a 20-year bond issue.

4. Machinery and equipment was purchased for $30,000 by the commuter parking enterprise fund. The purchase was financed by a bank loan.

Required

Prepare the entries needed to record the above transactions. For each entry, indicate the fund in which the entry is recorded, and how the asset, and liability if appropriate, are reported in the funds balance sheet.

1. Land infrastructure improvements were paid by the general fund at a cost of $2,400,000.

Drop down options are: capital projects fund, enterprise fund, general fund, and internal service fund for entry.

Drop down for recording are: Bond proceeds, Capital outlay, Cash, Equipment, Loan payable

Entry is made in the:

Description Debit Credit Is asset and/or liability reported on the fund's balance sheet? 2. A used delivery van was purchased by the internal service fund at a cost of $10,000. Entry is made in the: Description Debit Credit Is asset and/or liability reported on the fund's balance sheet? 3. A building was purchased for $20,000,000 by the capital projects fund to serve as a youth center. The purchase was financed by a 20-year bond issue. Entry is made in the Description Debit Credit To record bond issuance. Is asset and/or liability reported on the fund's balance sheet? 4. Machinery and equipment was purchased for $30,000 by the commuter parking enterprise fund. The purchase was financed by a bank loan. Entry is made in the: Description Debit Credit To record bond issuance. Is asset and/or liability reported on the fund's balance sheet