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.)
Fund / Transaction Governmental General Journal Debit Credit Activties 1. The city received a donation of land that is to be used by Parks and Recreation to develop a public park. At the time of the donation, the land had an acquisition value of $5,200,000 and was recorded on the donor's books at a historical cost of $4,500,000. 1 General Fund No Journal Entry Required Governmental Activities Land 5,200,000 Program Revenue-Culture and RecreationCapital Grants And Contributions 5,200,000 2. The Public Works Department sold machinery with a historical cost of $35,100 and accumulated depreciation of $28,700 for $6,000. The machinery had originally been purchased with special revenue funds. 2 General Fund Cash 6,000 Other Financing SourcesProceeds of Capital Asset Sale 6,000 Governmental Activities Cash 6,000 28,700 Accumulated Depreciation Machinery and Equipment Loss on Sale of Machinery Machinery and Equipment 400 31,500 X 3. A car was leased for the mayor's use. The first payment was $1,000 and the present value of the remaining lease payments was $29,000. (Note: The initial cash payment was made by the General Fund.) 3a General Fund ExpendituresGeneral Government 30,000 Other Financing SourcesLease Agreements 29,000 Cash 1,000 3b Governmental Activities Record the lease of car to the Mayor. 30,000 ExpendituresGeneral Government Lease Obligations Payable 30,000 4. During the current year, a capital projects fund completed a new public safety building that was started in the prior year. The total cost of the project was $9,720,000. Financing for the project came from a $9,000,000 bond issue that was sold in the prior year and from a $720,000 federal capital grant received in the current year. Current-year expenditures for the project totaled $1,176,000. The full cost is attributed to the building because it was constructed on city-owned property. 4a Capital Project Record the funds received for the public safety building. Fund Cash 720,000 Revenues 720,000 4b Record the current year's expenditure for the public safety building. Construction Expenditures Cash 1,176,000 OO 1,176,000 40 Governmental Activities Record the funds received for the public safety building. Cash 720,000 Program Revenue-Public SafetyCapital Grants and Contributions 720,000 4d Record the current year's expenditure for the public safety building. Construction Work in Progress Cash 1,176,000 1,176,000 4e Record the transfer of the work in progress to the capital asset. Buildings Construction Work in Progress 9,720,000 9,720,000 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. General Fund No Journal Entry Required 5 Governmental Activities Depreciation ExpensesBuildings 324,000 Accumulated DepreciationBuildings 324,000 X 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 $1,156,000. 6 General Fund No Journal Entry Required Governmental Activities ExpensesGeneral Government 1,156,000 Machinery and Equipment 1,156,000
