Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng

Exercise 16

Journal entries, schedule of capital assets. The following schedule of capital assets was obtained from the records of the city of Elmcreek:
A summary of fixed asset transactions for 2019 follows:
a. Construction on the new school, a capital project started during 2018, was completed at a total cost of $850,000, which was financed by a serial bond issue. No other construction was in progress at the beginning of 2019.
b. A citizen donated 400 acres of land to the city to be used as a park. The land had a fair value of $140,000 when donated.
c. The municipal waterworks constructed a new pumping plant at a cost of $120,000. The plant was financed from the water utility revenues. The water utility is accounted for in a proprietary fund.
d. The fire department traded in an old fire engine and $105,000 cash for a new model. The old equipment had originally cost $65,000, and $15,000 was allowed on the trade-in.
e. The city hall was refurbished at a cost of $40,000, which was paid from general fund revenues. The refurbishing constituted a capital improvement.
f. Road-use taxes of $30,000 were collected by a special revenue fund, of which $20,000 has been used for improvements other than buildings.
g. Depreciation of $100,000 on buildings, $50,000 on machinery and equipment, and $25,000 on infrastructure were recorded.
1. Prepare journal entries only for those transactions that are to be accounted for in the general fixed assets account group. Use the city's account titles.
2. Prepare a schedule of capital assets as of December 31, 2019