On January 1, 2020, the City of Hastings creates a solid waste landfill that it expects to reach capacity gradually over the next 20 years. If the landfill were to be closed at the current time, closure costs would be approximately $1.18 million plus an additional $870,000 for postclosure work. Of these totals, the city must pay $53,500 on December 31 of each year for preliminary closure work. At the end of 2020, the landfill reaches 3 percent of capacity. At the end of 2021, the landfill reaches 12 percent of capacity. At the end of 2021, a reassessment is made. Experts determine total closure costs will be $1.38 million rather than $1.18 million. a. Assume the city views the landfill as an enterprise fund. What journal entries should the city make in 2020 and 2021 in preparing government-wide financial statements? b. Assume the city views the landfill as being within the general fund. What journal entries should the city make in 2020 and 2021 in preparing government-wide financial statements? c. Assume the city views the landfill as an enterprise fund. What journal entries should the city make in 2020 and 2021 in preparing fund financial statements? d. Assume the city views the landfill as being within the general fund. What journal entries should the city make in 2020 and 2021 in preparing fund financial statements? Answer is not complete.
On January 1, 2020, the City of Hastings creates a solid waste landfill that it expects to reach capacity gradually over the next 20 years. If the landfill were to be closed at the current time, closure costs would be approximately $1.18 million plus an additional $870,000 for postclosure work. Of these totals, the city must pay $53,500 on December 31 of each year for preliminary closure work. At the end of 2020, the landfill reaches 3 percent of capacity. At the end of 2021, the landfill reaches 12 percent of capacity. At the end of 2021, a reassessment is made. Experts determine total closure costs will be $1.38 million rather than $1.18 million. a. Assume the city views the landfill as an enterprise fund. What journal entries should the city make in 2020 and 2021 in preparing government-wide financial statements? b. Assume the city views the landfill as being within the general fund. What journal entries should the city make in 2020 and 2021 in preparing government-wide financial statements? c. Assume the city views the landfill as an enterprise fund. What journal entries should the city make in 2020 and 2021 in preparing fund financial statements? d. Assume the city views the landfill as being within the general fund. What journal entries should the city make in 2020 and 2021 in preparing fund financial statements? Answer is not complete.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 13E: On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million....
Related questions
Question
gp
Transcribed Image Text:On January 1, 2020, the City of Hastings creates a solid waste landfill that it expects to reach capacity gradually over the next 20 years.
If the landfill were to be closed at the current time, closure costs would be approximately $1.18 million plus an additional $870,000 for
postclosure work. Of these totals, the city must pay $53,500 on December 31 of each year for preliminary closure work. At the end of
2020, the landfill reaches 3 percent of capacity. At the end of 2021, the landfill reaches 12 percent of capacity. At the end of 2021, a
reassessment is made. Experts determine total closure costs will be $1.38 million rather than $1.18 million.
a. Assume the city views the landfill as an enterprise fund. What journal entries should the city make in 2020 and 2021 in preparing
government-wide financial statements?
b. Assume the city views the landfill as being within the general fund. What journal entries should the city make in 2020 and 2021 in
preparing government-wide financial statements?
c. Assume the city views the landfill as an enterprise fund. What journal entries should the city make in 2020 and 2021 in preparing
fund financial statements?
d. Assume the city views the landfill as being within the general fund. What journal entries should the city make in 2020 and 2021 in
preparing fund financial statements?
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Required D
Assume the city views the landfill as being within the general fund. What journal entries should the city make in 2020 and
2021 in preparing fund financial statements? (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field. Enter your answer in whole dollars not in millions.)
No
Date
General Journal
1
December 31, 202 Expenditures-landfill closure
Cash
2
December 31, 202 Expenditures-landfill closure
Cash
3
December 31, 202 No journal entry required
4
December 31, 202 No journal entry required
Debit
Credit
53,500
53,500
53,500
53,500
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning