Prepare journal entries for each of the following transactions entered into by the City of Loveland. (If no entry is required for atransaction/event, select "No Journal Entry Required" in the first account field.)Fund/ GovernmentalActivtiesTransactionDebitCreditGeneral Journal1. The city received a donation of land that is to be used by Parks and Recreation to develop a public park. At the time of the donation, the land had an acquisitionvalue of $5,200,000 and was recorded on the donor's books at a historical cost of $4,500,000.1General Fund2. The Public Works Department sold machinery with a historical cost of $35,100 and accumulated depreciation of $28,700 for $6,000. The machinery hadoriginally been purchased with special revenue funds.2General Fund3b3. A car was leased for the mayor's use. The first payment was $1,000 and the present value of the remaining lease payments was $29,000. (Note: The initial cashpayment was made by the General Fund.)3aGeneral Fund4a4bGovernmental Activities4. 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. Thebuilding came in $5,000 under budget, which is transferred to the General Fund.Capital Projects FundRecord the $750,000 cash payment made for construction costs during this year.4c4dGovernmental Activities4eGovernmental ActivitiesGeneral FundRecord in the governmental activities general journal, the $750,000 cash payment made for construction costs during thisGovernmental Activities year.Record the balance $5,000 transferred to the General Fund.Governmental Activities5. 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.5General FundRecord in the governmental activities general journal, the completion of a new public safety building on city-ownedproperty started in the prior year costing $9,720,000.Governmental Activities6. Due to technological developments, the city determined that the service capacity of some of the technology equipment used by general government had beenimpaired. The calculated impairment loss due to technology obsolescence was $1,156,000.6General Fund

Date Account title Debit Credit 1 General Fund: No entry: There…

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Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Date	Account title	Debit	Credit
1	General Fund:
	No entry: There would be no entry since there is no flow of financial resources.
	Government Activities:
	Land	$5,200,000
	Program revenue: Parks and Recreation		$5,200,000
2	General Fund:
	Cash	$6,400
	Other sources: Sale of capital asset		$6,400
	Government Activities:
	Cash	$6,400
	Accumulated Depreciation	$28,700
	Machinery and equipment		$35,100
3	General Fund:
	Expenditure: General Government	$30,550
	Capital lease agreement		$30,000
	Cash		$550
	Government Activities:
	Machinery and equipment	$30,550
	Capital lease payable		$30,550
4	Capital project fund:
	Cash	$720,000
	Program revenue: Public safety grants		$720,000
	Construction expenditure	$1,176,000
	Cash		$1,176,000
	Government Activities:
	Cash	$720,000
	Program revenue: Public safety grants		$720,000
	Construction work in process	$1,176,000
	Cash		$1,176,000
	Building	$9,720,000
	Construction work in process		$9,720,000
5	General Fund:
	No entry: There would be no entry since there is no flow of financial resources.
	Government Activities:
	Expenditure: General Government	$1,156,000
	Machinery and equipment		$1,156,000