Problem 17 35 (Algo) (LO 17 5) On January 1, 2020, the City of Hastings creates a solid waste landfill that it expects to reach capacity gradually over the next 20 years If the landfill were to be closed at the current time, closure costs would be approximately $1 85 million plus an additional $790,000 for postclosure work Of these totals, the city must pay $58,900 on December 31 of each year for preliminary closure work At the end of 2020, the landfill reaches 6 percent of capacity At the end of 2021, the landfill reaches 16 percent of capacity At the end of 2021, a reassessment is made Experts determine total closure costs will be $2 05 million rather than $1 85 million Assume the city views the landfill as an enterprise fund What journal entries should the city make in 2020 and 2021 in preparing government wide financial statements Record entry to recognize the portion of total costs for eventual closure of landfill Record first payment of costs necessitated by eventual closure of landfill Record entry to recognize the portion of total costs for eventual closure of landfill Record second payment of costs necessitated by eventual closure of landfill Assume the city views the landfill as being within the general fund What journal entries should the city make in 2020 and 2021 in preparing government wide financial statements Record entry to recognize the portion of total costs for eventual closure of landfill Record first payment of costs necessitated by eventual closure of landfill Record entry to recognize the portion of total costs for eventual closure of landfill Record second payment of costs necessitated by eventual closure of landfill Assume the city views the landfill as an enterprise fund What journal entries should the city make in 2020 and 2021 in preparing fund financial statements Record entry to recognize the portion of total costs for eventual closure of landfill Record first payment of costs necessitated by eventual closure of landfill Record entry to recognize the portion of total costs for eventual closure of landfill Record second payment of costs necessitated by eventual closure of landfill Assume the city views the landfill as being within the general fund What journal entries should the city make in 2020 and 2021 in preparing fund financial statements Record entry to recognize the portion of total costs for eventual closure of landfill Record first payment of costs necessitated by eventual closure of landfill Record entry to recognize the portion of total costs for eventual closure of landfill Record second payment of costs necessitated by eventual closure of landfill

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Problem 17-35 (Algo) (LO 17-5) On January 1, 2020, the City of Hastings creates a solid waste landfill that it expects to reach capacity gradually

Problem 17-35 (Algo) (LO 17-5)

On January 1, 2020, the City of Hastings creates a solid waste landfill that it expects to reach capacity gradually over the next 20 years. If the landfill were to be closed at the current time, closure costs would be approximately $1.85 million plus an additional $790,000 for postclosure work. Of these totals, the city must pay $58,900 on December 31 of each year for preliminary closure work. At the end of 2020, the landfill reaches 6 percent of capacity. At the end of 2021, the landfill reaches 16 percent of capacity. At the end of 2021, a reassessment is made. Experts determine total closure costs will be $2.05 million rather than $1.85 million.

Assume the city views the landfill as an enterprise fund. What journal entries should the city make in 2020 and 2021 in preparing government-wide financial statements?
1. Record entry to recognize the portion of total costs for eventual closure of landfill.
2. Record first payment of costs necessitated by eventual closure of landfill.
3. Record entry to recognize the portion of total costs for eventual closure of landfill.
4. Record second payment of costs necessitated by eventual closure of landfill.
Assume the city views the landfill as being within the general fund. What journal entries should the city make in 2020 and 2021 in preparing government-wide financial statements?
1. Record entry to recognize the portion of total costs for eventual closure of landfill.
2. Record first payment of costs necessitated by eventual closure of landfill.
3. Record entry to recognize the portion of total costs for eventual closure of landfill.
4. Record second payment of costs necessitated by eventual closure of landfill.
Assume the city views the landfill as an enterprise fund. What journal entries should the city make in 2020 and 2021 in preparing fund financial statements?
1. Record entry to recognize the portion of total costs for eventual closure of landfill.
2. Record first payment of costs necessitated by eventual closure of landfill.
3. Record entry to recognize the portion of total costs for eventual closure of landfill.
4. Record second payment of costs necessitated by eventual closure of landfill.
Assume the city views the landfill as being within the general fund. What journal entries should the city make in 2020 and 2021 in preparing fund financial statements?
1. Record entry to recognize the portion of total costs for eventual closure of landfill.
2. Record first payment of costs necessitated by eventual closure of landfill.
3. Record entry to recognize the portion of total costs for eventual closure of landfill.
4. Record second payment of costs necessitated by eventual closure of landfill.