Landfill Problem

Early in 2020, a government opened up a landfill. It estimated that the total capacity would be 7.0 million cubic feet and that the site would be used for 30 years.

During 2020, the government used 55,000 cubic feet of the landfill. At year-end, it estimated that total closure-related costs would be $21,000,000.

In 2021, the government used 127,000 cubic feet of the landfill. At year-end, it estimated that total closure-related costs increased to $21,200,000 and that the landfill capacity had decreased to 6,900,000 cubic feet.

In 2022, the government used 135,000 cubic feet of the landfill. At year-end, it estimated that total closure-related costs remained at $21,200,000 and that landfill capacity had remained at 6,900,000 cubic feet. Moreover, in 2022 the government spent $200,000 on capital assets to be used to operate the ongoing operations.

Prepare journal entries for 2020 2022 and give the balance of the landfill liability account at the end of 2022.

Part E.

A government self insures its auto fleet. The insurance is handled through the Internal Service Fund. The premium is established to cover actual losses and an additional amount for catastrophic losses. During 2020, ISF billed other GF departments for $220,000 and an Enterprise Fund for 80,000. Of these amounts, $20,000 and $10,000 related to possible catastrophes. During 2020, actual claim losses total $265,000, none of which resulted from catastrophes.

Provide the entries for the ISF, to record receipt of revenues and payment of claims.

Also, provide the journal entries to record the expenditure/expense by the GF and EF.