Question
the city of wetteville has a fical year ending june 30. examine the following transactions for wetteville. a) on 6/1/13 wetteville enters into a 5
the city of wetteville has a fical year ending june 30. examine the following transactions for wetteville.
a) on 6/1/13 wetteville enters into a 5 year lease on a copying machine. the lease meets the criteria of a capital lease and carries a implied interest rate of 10%. the copier has a preasent value of $2300. wetteville has to put a $300 down payment on the lease at the begining of the lease with monthly payments thereafter of $42.49.
b) on 6/5/13 wetteville opens a new landfill. the engineers estimate that in the end of 10 years the landfill will be full. estimated costs to close the landfill are currently $3,500,000 c) on 6/18/13 wetteville recieves a donation of a vintage railroad steam engine. the engine will be put out on display at a local town park. a fee will be charged to actually climb up into the engine. the engine is valued at 500,000 d) on 6/30/13 wetteville makes its first payment on the leased copier. the $42.49 payment includes $16.68 interest e) on 6/30/13 wetteville estimates that the landfill is 2% filled. prepare all journal entries for about transactions on the dates mentioned for each lettered item for the purposes of preparing the goverment-wide financial statements
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