UOP ACCT 567 Week 3 Problems 5-3 and 6-5

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UOP ACCT 567 Week 3 Problems 5-3 and 6-5

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• Make all necessary entries in the appropriate
  governmental fund general journal and the
  government-wide governmental activities general
  journal for each of the following transactions
  entered into by the City of Fordache.

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• 1. The city received a donation of land that is
  to be used by Parks and Recreation for a park. At
  the time of the donation, the land had a fair
  value of 5,200,000 and was recorded on the
  donors books at a historical cost of 4,500,000.
• 2. The Public Works Department sold machinery
  with a historical cost of 35,100 and accumulated
  depreciation of 28,700 for 6,400. The machinery
  had originally been purchased with special
  revenue funds.
• 3. A car was leased for the mayors use. Since
  the term of the lease exceeded 75 percent of the
  useful life of the car, the lease was
  capitalized. The first payment was 550 and the
  present val4. During the current year, a capital
  projects fund completed a new public safety
  building that was started in the prior year. The
  total cost of the project was 9,720,000.
  Financing for the project came from a 9,000,000
  bond issue that was sold in the prior year, and
  from a 720,000 federal capital grant received in
  the current year. Current year expenditures for
  the project totaled 1,176,000. The full cost is
  attributed to the building since it was
  constructed on city-owned property.
• ue of the remaining lease payments was 30,000.

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• 5. Due to technological developments, the city
  determined that the service capacity of some of
  the technology equipment used by general
  government had been impaired. The calculated
  impairment loss due to technology obsolescence
  was 1,156,000.