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The City of Baconsville engaged in the following transactions. Assume that the city maintains its books and records in a manner that facilitates the preparation
- The City of Baconsville engaged in the following transactions. Assume that the city maintains its books and records in a manner that facilitates the preparation of government fund financial statements.
Required: Prepare the appropriate journal entries in the general fund. If appropriate, write No entry required.
- The city purchased for cash three dump trucks for $80,000 each.
- The city sold for $4,000 a police car that had been purchased four years ago at a cost of $30,000. At the time of acquisition, the city estimated that the police car had a useful life of five years and a salvage value of $5,000.
- During the year, the city spent $12 million to build a third lane on both sides of the major north-south highway through town.
- During the year the city began construction of a new city hall. By year-end, the city had made progress payments to the contractor of $3 million.
- The city received a gift of land from a citizen. The land is to be used to build a city park. The land had been in the donors family since it was homesteaded. It had a fair value when contributed of $2 million.
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