The City of fastville engaged in the given transactions.; REQUIRED:; Supposing that the City maintain its books and records in the manner which helps the preparation of fund financial statements, create the suitable journal entries in the General Fund.; If no entry is required, prepare “No Entry Required.”
a) City purchased for cash three dump trucks at unit cost of $70,000 each.
b) City sold for $3,000, a police car which had been purchased four years ago at a cost of $30,000.; at the time of acquisition, City approximate that police car had a useful life of five years and a salvage value of $5,000.
c) In the year, the City spent $12 million to build the third lane on both sides of major north-south highway through town.
d) City traded in the pickup truck used in general government operations for a new pickup truck, paying a difference of $16,000.; Old pickup truck was purchased four years ago at a cost of $21,000.; At the time it had the estimated useful life of five years, and the estimated salvage value of $6,000.; At the time of the trade, the old truck had a fair value of $10,000.; The new truck has a sticker price of $27,000.;
e) In the year the City began construction of New City Hall.; by year-end, City had made development payments to contractor of $2 million.