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Exercise 5-18 (Static) General Capital Assets [LO 5-2,5-4] Prepare journal entries for each of the following transactions entered into by the City of Loveland. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 4. During the current year, a capital projects fund completed a new public safety building started in the prior year. The total cost of the project was $9.720,000 current-year construction costs totaled $750,000 paid in cash. The full cost is attributed to the building because it was constructed on city-owned property. The building came in $5,000 under budget, which is transferred to the General Fund. 4a Capital Projects Fund Record the $750,000 cash payment made for construction costs during this year Buildings 750,000 Cash 750,000 45 Record the balance $5,000 transferred to the General Fund. 4c General Fund 4d Governmental Activities Record in the governmental activities general journal, the $750,000 cash payment made for construction costs during this year 4e Record in the governmental activities general journal, the completion of a new public safety building on city-owned property started in the prior year costing $9.720,000 5. The city records a half year of straight-line depreciation on capital assets placed in service during the year. The building in item 4 above has an estimated 30- year life and no salvage value 5 General Fund No Journal Entry Required Governmental Activities 6. Due to technological developments, the city determined that the service capacity of some of the technology equipment used by general government had been impaired. The calculated impairment loss due to technology obsolescence was $1,156,000 6 General Fund No Journal Entry Required Governmental Activities Machinery and Equipment 1,156,000