The City of Grinders Switch maintains its books in a manner that facilitates the preparation of fund accounting statements and uses worksheet adjustments to prepare government wide statements General fixed assets as of the beginning of the year, which had not been recorded, were as follows Land $7,691,000 Buildings 33,359,300 Improvements Other than Buildings 14,821,900 Equipment 11,555,500 Accumulated Depreciation, Capital Assets 25,303,300 During the year, expenditures for capital outlays amounted to $7,501,000 Of that amount, $4,800,600 was for buildings the remainder was for improvements other than buildings The capital outlay expenditures outlined in (2) were completed at the end of the year (and will begin to be depreciated next year) For purposes of financial statement presentation, all capital assets are depreciated using the straight line method, with no estimated salvage value Estimated lives are as follows buildings, 40 years improvements other than buildings, 20 years and equipment, 10 years In the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances, the City reported proceeds from the sale of land in the amount of $600,100 The land originally cost $505,100 At the beginning of the year, general obligation bonds were outstanding in the amount of $4,002,000 Unamortized bond premium amounted to $19,000 Note This entry is not covered in the text, but is similar to entry 9 in the chapter During the year, debt service expenditures for the year amounted to interest, $612,200 principal, $434,900 For purposes of government wide statements, $1,900 of the bond premium should be amortized No adjustment is necessary for interest for interest accrual At year end, additional general obligation bonds were issued in the amount of $1,794,400, at par Required Prepare the journal form, worksheet adjustments for each of the above situations (If no entry is required for a transaction event, select No Journal Entry Required in the first account field Round your answers to the nearest whole dollar)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 13, 2024

The City of Grinders Switch maintains its books in a manner that facilitates the preparation of fund accounting statements and uses worksheet adjustments to prepare

The City of Grinders Switch maintains its books in a manner that facilitates the preparation of fund accounting statements and uses worksheet adjustments to prepare government-wide statements.

General fixed assets as of the beginning of the year, which had not been recorded, were as follows:

Land	$7,691,000
Buildings	33,359,300
Improvements Other than Buildings	14,821,900
Equipment	11,555,500
Accumulated Depreciation, Capital Assets	25,303,300

During the year, expenditures for capital outlays amounted to $7,501,000. Of that amount, $4,800,600 was for buildings; the remainder was for improvements other than buildings.
The capital outlay expenditures outlined in (2) were completed at the end of the year (and will begin to be depreciated next year). For purposes of financial statement presentation, all capital assets are depreciated using the straight-line method, with no estimated salvage value. Estimated lives are as follows: buildings, 40 years; improvements other than buildings, 20 years; and equipment, 10 years.
In the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances, the City reported proceeds from the sale of land in the amount of $600,100. The land originally cost $505,100.
At the beginning of the year, general obligation bonds were outstanding in the amount of $4,002,000. Unamortized bond premium amounted to $19,000. Note: This entry is not covered in the text, but is similar to entry 9 in the chapter.
During the year, debt service expenditures for the year amounted to: interest, $612,200; principal, $434,900. For purposes of government-wide statements, $1,900 of the bond premium should be amortized. No adjustment is necessary for interest for interest accrual.
At year-end, additional general obligation bonds were issued in the amount of $1,794,400, at par.

Required:

Prepare the journal form, worksheet adjustments for each of the above situations. (If no entry is required for a transaction/event, select No Journal Entry Required in the first account field. Round your answers to the nearest whole dollar).