For the following situations, make adjusting entries necessary to prepare a city's government-wide financial statements for the year ended December 31, 2020.
a. In its government-wide financial statements for the year ended December 31, 2019, the city had reported a $900,000 long-term liability for estimated judgments and claims. At December 31, 2020, the city estimated that the long-term liability would be $935,000.
b. In preparing its fund financial statements for 2020, the city accrued a $35,000 liability for compensated absences that were expected to be liquidated with expendable available resources. The city calculated that the long-term liability for compensated absences increased from $835,000 at December 31, 2019 to $850,000 at December 31, 2020.

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The Answer of For the following situations, make adjusting entries necessary to prepare a city's government-wide financial statements for the year ended December 31, 2020.
a. In its government-wide financial statements for the year ended December 31, 2019, the city had reported a $900,000 long-term liability for estimated judgments and claims. At December 31, 2020, the city estimated that the long-term liability would be $935,000.
b. In preparing its fund financial statements for 2020, the city accrued a $35,000 liability for compensated absences that were expected to be liquidated with expendable available resources. The city calculated that the long-term liability for compensated absences increased from $835,000 at December 31, 2019 to $850,000 at December 31, 2020.

For the Following Situations, Make Adjusting Entries Necessary to Prepare