Reconciliations to yield government-wide financial statements (landfill closure liability) The City of Captiva is preparing its government-wide financial statements from its fund financial statements.

The City maintains a landfill for solid waste disposal and estimates that its total capacity is 11 million tons. At the end of the prior year, the City estimated that it had used 4 million tons and reported a liability for closure and postclosure costs of $4 million. During the year, the City estimates that it used an additional 1,500,000 tons of capacity. Closure and postclosure costs are expected to be $11 million when the Landfill reaches capacity.

a. Calculate the current period cost.

Current period cost = $Answer

b. What reconciliation entries must the City include in its government-wide financial statements relating to the Landfill Liability at the beginning of the year and as of the end of the year?

Reconciliation Spreadsheet
Description	Debit	Credit
AnswerLandfill expenseLiability liabilityNet position	Answer	Answer
AnswerLandfill expenseLiability liabilityNet position	Answer	Answer
To record BOY landfill liability for government-wide financial statement presentation
AnswerLandfill expenseLiability liabilityNet position	Answer	Answer
AnswerLandfill expenseLiability liabilityNet position	Answer	Answer
To record landfill liability activity for government-wide financial statement presentation