Exercise $8-9($Algo$)$

The Clty of Grinders Switch maintalns its books in a manner that facilitates the preparation of fund accounting statements and uses

worksheet adjustments to prepare government$-$wide statements.

General fixed assets as of the beginning of the year, which had not been recorded, were as follows:

During the year, expenditures for capital outlays amounted to $$7,534,000.$ Of that amount, $$4,822,000$ was for buildings; the

remalnder was for improvements other than bulldings.

The capital outlay expenditures outlined in $(2)$ were completed at the end of the year $($and will begin to be depreclated next year$).$

For purposes of financlal statement presentation, all capital assets are depreclated using the stralght$-$IIne method, with no

estimated salvage value. Estimated Ilves are as follows: bulldings, $40$ years; Improvements other than bulldings, $20$ years; and

equipment, $10$ years.

In the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances, the City reported proceeds from

the sale of land in the amount of $$603,400.$ The land originally cost $$508,400.$

At the beginning of the year, general obligation bonds were outstanding in the amount of $$4,035,000.$ Unamortized bond premlum

amounted to $$52,000.$

During the year, debt service expenditures for the year amounted to: Interest, $$1,288,400$; princlpal, $$1,189,000.$ For purposes of

government$-$wide statements, $$5,200$ of the bond premlum should be amortized. No adjustment is necessary for interest accrual.

At year$-$end, additional general obligation bonds were Issued in the amount of $$4,911,200,$ at par.

Prepare the journal entries for the worksheet adjustments for each of the above situations. $($If no entry is required for a

transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.$)$ Answer is not complete.

$\backslash$table$[[$No$,$Transaction,General Journal,,Debit,Credit$],[1,01,$Land,$\backslash$theta $,3,774,800,],[,$Buildings,$,3,344,800\backslash$times $,],[,$Improvements Other Than Buildings,$\backslash$theta $,14,886,800,],[,$Equipment,$(,11,285,200\backslash$times $,],[,$Accumulated Depreciation, CapitalAssets,o$.,,25,412,200],[,$Net Position,var$\backslash$theta $,,7,879,400\backslash$chi $],[2,02,$Buildings,O$/,4,822,000,],[,$Improvements Other Than Buildings,$(,2,712,000,],[,$Expenditures$-$Capital Outlay,o$.,,7,534,000],[3,03,$No Journal Entry Required,x$,,],[4,04,$Special Item$-$Proceeds from Sale of Land,O$/,603,400,],[,$Land,$\backslash$theta $,,508,400],[,$Special Item$-$Gain on Sale of Land,Q$,,95,000],[5,05,$Premium on Bonds Payable,x$,52,000$x$,],[,$Interest Expense,x$,,52,000],[6,6$ a$,$Interest Expense,x$,1,288,400,],[,$Expenditures$-$Principal,x$,1,189,000$x$,],[,$Premium on Bonds Payable,x$,,2,477,400\backslash$times $],[7,8$ b$,$Expenditures$-$Principal,x$,5,200$x$,],[,$Bonds Payable,x$,,5,200$@$],[8,07,$Premium on Bonds Payable,x$,4,911,200,],[,$Bonds Payable,$\backslash$theta $,,4,811,200]]$