Fundamentals of Advanced Accounting
Fundamentals of Advanced Accounting
6th Edition
ISBN: 9780077862237
Author: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Publisher: McGraw-Hill Education
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Chapter 12, Problem 30P

a.

To determine

Record the journal entries when the landfill is treated as an enterprise fund.

a.

Expert Solution
Check Mark

Explanation of Solution

Journal entries on the government wide- financial statement of H, when landfill is treated as enterprise fund.

DateAccount Title and ExplanationPost Ref.

Debit

   ($)

Credit

    ($)

 
31-12-2015Expense – landfill closure 57,000
Landfill closure liability 57,000
(To record the landfill expense for the current year) 
 
31-12-2015Landfill closure liability 50,000
Cash 50,000
(To record the payment of landfill expense) 
 
31-12-2016Expense – landfill closure 132,000
Landfill closure liability 132,000
(To record the landfill expense for the current year) 
 
31-12-2016Landfill closure liability 50,000
Cash 50,000
(To record the payment of landfill expense) 
 

Table: (1)

Working notes:

  • Year 1:

Expense = Total landfill cost x Capacity reached= ($1,200,000+$7,000,000) x 3%= $57,000

  • Year 2:

Expense = Total landfill cost x Capacity reached - Last year expense= ($1,400,000+$7,000,000) x 9% -57,000= $132,000

b.

To determine

Record the journal entries when the landfill is treated as a journal fund.

b.

Expert Solution
Check Mark

Explanation of Solution

Journal entries on the government wide- financial statement of H, when landfill is treated a journal fund.

DateAccount Title and ExplanationPost Ref.

Debit

   ($)

Credit

    ($)

 
31-12-2015Expense – landfill closure 57,000
Landfill closure liability 57,000
(To record the landfill expense for the current year) 
 
31-12-2015Landfill closure liability 50,000
Cash 50,000
(To record the payment of landfill expense) 
 
31-12-2016Expense – landfill closure 132,000
Landfill closure liability 132,000
(To record the landfill expense for the current year) 
 
31-12-2016Landfill closure liability 50,000
Cash 50,000
(To record the payment of landfill expense) 
 

Table: (2)

Working note:

  • Year 1:

Expense = Total landfill cost x Capacity reached= ($1,200,000+$7,000,000) x 3%= $57,000

  • Year 2:

Expense = Total landfill cost x Capacity reached - Last year expense= ($1,400,000+$7,000,000) x 9% -57,000= $132,000

c.

To determine

Record the journal entries when the landfill is treated as an enterprise fund.

c.

Expert Solution
Check Mark

Explanation of Solution

Journal entries on the fund financial statement of H, when landfill is treated an enterprise fund.

DateAccount Title and ExplanationPost Ref.

Debit

   ($)

Credit

    ($)

 
31-12-2015Expense – landfill closure 57,000
Landfill closure liability 57,000
(To record the landfill expense for the current year) 
 
31-12-2015Landfill closure liability 50,000
Cash 50,000
(To record the payment of landfill expense) 
 
31-12-2016Expense – landfill closure 132,000
Landfill closure liability 132,000
(To record the landfill expense for the current year) 
 
31-12-2016Landfill closure liability 50,000
Cash 50,000
(To record the payment of landfill expense) 
 

Table: (3)

Working notes:

  • Year 1:

Expense = Total landfill cost x Capacity reached= ($1,200,000+$7,000,000) x 3%= $57,000

  • Year 2:

Expense = Total landfill cost x Capacity reached - Last year expense= ($1,400,000+$7,000,000) x 9% -57,000= $132,000

d.

To determine

Record the journal entries when the landfill is treated as a journal fund.

d.

Expert Solution
Check Mark

Explanation of Solution

Journal entries on the fund financial statement of H, when landfill is treated a journal fund.

DateAccount Title and ExplanationPost Ref.

Debit

   ($)

Credit

    ($)

 
31-12-2015Expenditures – landfill closure 50,000
Cash 50,000
(To record the payment of landfill closure) 
 
31-12-2016Expenditures – landfill closure 50,000
Cash 50,000
(To record the payment of landfill closure) 
 

Table: (4)

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Chapter 12 Solutions

Fundamentals of Advanced Accounting

Ch. 12 - Prob. 11QCh. 12 - Prob. 12QCh. 12 - Prob. 13QCh. 12 - What does a comprehensive annual financial report...Ch. 12 - Prob. 15QCh. 12 - Prob. 16QCh. 12 - What is the difference between a blended component...Ch. 12 - Prob. 18QCh. 12 - Prob. 19QCh. 12 - Prob. 20QCh. 12 - Prob. 21QCh. 12 - How are internal service funds reported on...Ch. 12 - Prob. 23QCh. 12 - A general purpose government takes over a special...Ch. 12 - Prob. 25QCh. 12 - Prob. 26QCh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - A city creates a solid waste landfill. It assesses...Ch. 12 - Prob. 7PCh. 12 - If this landfill is judged to be a proprietary...Ch. 12 - If this landfill is judged to be a governmental...Ch. 12 - The City of Nomanchester has a defined benefit...Ch. 12 - Prob. 11PCh. 12 - Prob. 12PCh. 12 - Prob. 13PCh. 12 - Prob. 14PCh. 12 - A city builds sidewalks throughout its various...Ch. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Prob. 21PCh. 12 - Prob. 22PCh. 12 - Prob. 23PCh. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - Prob. 26PCh. 12 - Prob. 27PCh. 12 - Prob. 28PCh. 12 - Prob. 29PCh. 12 - Prob. 30PCh. 12 - Prob. 31PCh. 12 - Prob. 32PCh. 12 - Prob. 33PCh. 12 - Prob. 34PCh. 12 - Prob. 35PCh. 12 - The City of Francois, Texas, has begun the process...Ch. 12 - Prob. 37PCh. 12 - Prob. 38PCh. 12 - Prob. 39PCh. 12 - Prob. 40PCh. 12 - Prob. 41PCh. 12 - 42. For each of the following, indicate whether...Ch. 12 - For problems 40 through 43, use the following...Ch. 12 - Prob. 44PCh. 12 - Prob. 45PCh. 12 - Prob. 46PCh. 12 - On the first day of the year, the City of Wolfe...Ch. 12 - Prob. 48PCh. 12 - A city has a solid waste landfill that was filled...Ch. 12 - Use the same information as in problem 44 except...Ch. 12 - Prob. 51PCh. 12 - Prob. 52PCh. 12 - Prob. 53PCh. 12 - Prob. 2DYSCh. 12 - Read the following journal article: 25 Years of...Ch. 12 - Prob. 4DYSCh. 12 - Prob. 5DYSCh. 12 - The City of Larissa recently opened a solid waste...
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