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. You are to prepare, in journal form, worksheet adjustments for each of the following situations. General fixed assets as of the beginning of the year, which had not recorded, were as follows: Land $ 7,554,000 Buildings $33,355,000 Improvements Other Than Buildings $14,820,000 Equipment $11,690,000 Accumulated Depreciation, Capital Assets $25,800,000
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. You are to prepare, in journal form, worksheet adjustments for each of the following situations.
- General fixed assets as of the beginning of the year, which had not recorded, were as follows:
Land $ 7,554,000
Buildings $33,355,000
Improvements Other Than Buildings $14,820,000
Equipment $11,690,000
2. During the year, expenditures for Capital outlays amounted to $7,500,000. Of that amount $4,800,000 was for buildings; the remainder was for improvements other than buildings.
3. The Capital outlay expenditures outlined in (2) were completed at the end of the year ( and will begin to be
4. 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 $600,000. The land originally cost $505,000
5. At the beginning of the year, general obligations bonds were outstanding in the amount of $4,000,000. Unamortized bond premium amounted to $16,000. Note: This entry is not covered in the text, but is similar to entry 9 in the chapter.
6. During the year, debt service expenditures for the year amounted to: interest, $580,000; Principal, $412,000. For purposes of government – wide statements, $1,600 of the bond premium should be amortized. No adjustment is necessary for interest accrual.
7. At year-end additional general obligation bonds were issued in the amount of $6,000,000 at par.
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