A landfill is scheduled to be filled to capacity gradually over a 10-year period. However, at the end of the first year of operations, the landfill is only 7 percent filled. How much liability for closure and postclosure costs should be recognized on government-wide financial statements? How much liability should be recognized on fund financial statements assuming that the landfill is recorded in an enterprise fund? How much liability should be recognized on fund financial statements assuming that the landfill is recorded in the general fund?

A landfill is scheduled to be filled to capacity gradually over a 10-year period. However, at the end of the first year of operations, the landfill is only 7 percent filled. How much liability for closure and postclosure costs should be recognized on government-wide financial statements? How much liability should be recognized on fund financial statements assuming that the landfill is recorded in an enterprise fund? How much liability should be recognized on fund financial statements assuming that the landfill is recorded in the general fund?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter7: Corporations: Reorganizations

Section: Chapter Questions

Problem 30P

See similar textbooks

Similar questions

A city starts a solid waste landfill that it expects to fill to capacity gradually over a 12-year period. At the end of the first year, it is 7 percent filled. At the end of the second year, it is 17 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached its capacity. If this landfill is judged to be a proprietary fund, what liability will be reported at the end of the second year on fund financial statements? a. $100,000. b. $180,000. c. $170,000. d. $0.
A city starts a solid waste landfill that it expects to fill to capacity gradually over a 10-year period. At the end of the first year, it is 8 percent filled. At the end of the second year, it is 19 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached its capacity.If this landfill is judged to be a proprietary fund, what liability will be reported at the end of the second year on fund financial statements? Choose the correct.a. $–0–b. $110,000c. $190,000d. $200,000
A city starts a solid waste landfill that it expects to fill to capacity gradually over a 12-year period. At the end of the first year, it is 7 percent filled. At the end of the second year, it is 17 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached its capacity. If this landfill is judged to be a governmental fund, what liability will be reported at the end of the second year on fund financial statements? a. $170,000. b. $0. c. $100,000. d. $180,000.
A city starts a solid waste landfill that it expects to fill to capacity gradually over a 10-year period. At the end of the first year, it is 8 percent filled. At the end of the second year, it is 19 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached its capacity. Which of the following is true for the Year 2 government-wide financial statements? Choose the correct.a. Both expense and liability will be zero.b. Both expense and liability will be $110,000.c. Expense will be $110,000 and liability will be $190,000.d. Expense will be $100,000 and liability will be $200,000.
Altona City opened a landfill that it elects to account for in an enterprise fund. At the time the landfill was opened the government estimated total capacity of the landfill to be 5 million cubic feet, useful life to be 20 years, and total closure and postclosure costs to be $18 million. At the end of Year 1, the government reestimated total closure costs to be $18.3 million and estimated capacity to be same as the original estimate. At the end of Year 2, the government reestimated total capacity to be 4.8 million cubic feet and total closure costs to be $18.5 million. At the end of Year 3, the government reestimated useful life to be 17 years but capacity remained unchanged from the preceding year and closure and postclosure costs were estimated to be $18.4 million. REQUIRED: Prepare journal entries in the enterprise fund to record the following events. a)During Year 1, the city estimates that 300,000 cubic feet of capacity were used. Record the landfill expense. b)During…
The City of Lawrence opens a solid waste landfill in 2017 that is at 54 percent of capacity on December 31, 2017. The city had initially anticipated closure costs of $2 million but later that year decided that closure costs would actually be $2.4 million. None of these costs will be incurred until 2021 when the landfill is scheduled to be closed. What will appear on the government-wide financial statements for this landfill for the year ended December 31, 2017? Assuming that the landfill is recorded within the general fund, what will appear on the fund financial statements for this landfill for the year ended December 31, 2017?
The City of Lawrence opens a solid waste landfill in 2017 that is at 54 percent of capacity on December 31, 2017. The city had initially anticipated closure costs of $2 million but later that year decided that closure costs would actually be $2.4 million. None of these costs will be incurred until 2021 when the landfill is scheduled to be closed.a. What will appear on the government-wide financial statements for this landfill for the year ended December 31, 2017?b. Assuming that the landfill is recorded within the general fund, what will appear on the fund financial statements for this landfill for the year ended December 31, 2017?
If this landfill is judged to be a governmental fund, what liability will be reported at the end of the second year on fund financial statements? $–0– $110,000 $190,000 $200,000
In response to a petition signed by the property owners of Riverdale Subdivision, the city of Pewaukee will oversee the installation of sidewalks, curbs, and gutters in the subdivision, to be accounted for in the city’s capital projects fund. Pewaukee reports on a calendar-year basis. Construction is estimated to cost $900,000 and will be financed by a $100,000 county grant, a $50,000 transfer from the city’s general fund, and special assessments of $750,000 to be levied against subdivision property owners. One-third of the levy is to be due on February 1 of each year, starting with 2018. The first $250,000 installment will be received by the capital projects fund directly. The remaining installments will be collected by the debt service fund and will be used to service the related bond debt. The project is to begin on January 15, 2018, and is to take 18 months to complete. It is estimated that 70% of the work will be completed during 2018.To cover construction costs, a 6%, $500,000…
A city has a solid waste landfill that was filled 12 percent in Year 1 and 26 percent in Year 2. During those periods, the government expected that total closure costs would be $2 million. As a result, it paid $50,000 to an environmental company on July 1 of each of these two years. Such payments will continue for several years to come. The city has a December 31 year-end.Use the same information above except that, by the end of Year 3, the landfill is 40 percent filled. The city now realizes that the total closure costs will be $3 million. Indicate whether each of the following independent statements is true or false and briefly explain each answer.a. If the city had known the costs were going to be $3 million from the beginning, the reporting on the fund financial statements would have been different in the past years if the landfill had been reported in an enterprise fund.b. If the landfill is monitored in the general fund, a liability will be reported for the governmental…
This year, Port City was sued for injuries sustained when a citizen slipped and broke her hip on the icy City Hall steps. The City attorney estimates the City will be held liable by the courts and a judgment of $200,000 will result. Because of the nature of the case it will likely be four years before the City makes any payment related to the accident. The present value of the likely future payment is $167,000. In the General Fund, at the end of the current fiscal year, Port City should recognize a liability of $200,000.00 $167,000.00 $0.00 $50,000.00
Johnson City purchased a fleet of snow removal trucks on April 1, 2021. The trucks had a cost of $20,000 with an estimated useful life of five years, and they were purchased by the general fund using cash. Address the following two questions in your written response : 1. What amount of expenditures would the governmental funds report for this transaction in fiscal year ended December 31, 2021? 2. If these trucks had been purchased by an enterprise fund instead of the general fund, what amount of expense would be associated with the trucks for fiscal year ended December 31, 2021?