Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Prepare journal entries for each of the following transactions entered into by the City of Loveland. (If no entry is required for a transaction/event, select
Prepare journal entries for each of the following transactions entered into by the City of Loveland. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your final answers to the nearest whole dollar.)
4. During the current year, a capital projects fund completed a new public safety building started in the prior year. The total cost of the project was $9,470,000; current-year construction costs totaled $670,000, paid in cash. The full cost is attributed to the building because it was constructed on city-owned property. The building came in $7,000 under budget, which is transferred to the General Fund. | ||||
4a | Capital Project Fund | Record the $670,000 cash payment made for construction costs during this year. | ||
4b | Record the balance $7,000 transferred to the General Fund. | |||
4c | General Fund | |||
4d | Governmental Activities | Record in the governmental activities general journal, the $670,000 cash payment made for construction costs during this year. | ||
4e | Record in the governmental activities general journal, the completion of a new public safety building on city-owned property started in the prior year costing $9,470,000. | |||
5. The city records a half year of straight-line depreciation on capital assets placed in service during the year. The building in item 4 above has an estimated 30-year life and no salvage value. | ||||
5 | General Fund | |||
Governmental Activities | ||||
6. Due to technological developments, the city determined that the service capacity of some of the technology equipment used by general government had been impaired. The calculated impairment loss due to technology obsolescence was $1,056,000. | ||||
6 | General Fund | |||
Governmental Activities | ||||
Step by Step Solution
★★★★★
3.41 Rating (157 Votes )
There are 3 Steps involved in it
Step: 1
4a Capital project fund journal entries DR Public safety building 670000 CR Cash ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started