On January 1, 2020, the City of Hastings creates a solid waste landfill that it expects to reach capacity gradually over the next 20years. If the landfill were to be closed at the current time, closure costs would be approximately $1.65 million plus an additional$900,000 for postclosure work. Of these totals, the city must pay $63,900 on December 31 of each year for preliminary closure work.At the end of 2020, the landfill reaches 4 percent of capacity. At the end of 2021, the landfill reaches 18 percent of capacity. At the endof 2021, a reassessment is made. Experts determine total closure costs will be $1.85 million rather than $1.65 million.a. Assume the city views the landfill as an enterprise fund. What journal entries should the city make in 2020 and 2021 in preparinggovernment-wide financial statements?b. Assume the city views the landfill as being within the general fund. What journal entries should the city make in 2020 and 2021 inpreparing government-wide financial statements?c. Assume the city views the landfill as an enterprise fund. What journal entries should the city make in 2020 and 2021 in preparingfund financial statements?d. Assume the city views the landfill as being within the general fund. What journal entries should the city make in 2020 and 2021 inpreparing fund financial statements?Complete this question by entering your answers in the tabs below.Required ARequired BRequired CRequired DAssume the city views the landfill as an enterprise fund. What journal entries should the city make in 2020 and 2021 in preparing fundfinancial statements? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enteryour answer in whole dollars not in millions.)View transaction listView journal entry worksheet

On January 1, 2020, the City of Hastings creates a solid waste landfill that it expects to reach capacity gradually over the next 20 years. If the landfill were to be closed at the current time, closure costs would be approximately $1.65 million plus an additional $900,000 for postclosure work. Of these totals, the city must pay $63,900 on December 31 of each year for preliminary closure work. At the end of 2020, the landfill reaches 4 percent of capacity. At the end of 2021, the landfill reaches 18 percent of capacity. At the end of 2021, a reassessment is made. Experts determine total closure costs will be $1.85 million rather than $1.65 million.

On January 1, 2020, the City of Hastings creates a solid waste landfill that it expects to reach capacity gradually over the next 20 years. If the landfill were to be closed at the current time, closure costs would be approximately $1.65 million plus an additional $900,000 for postclosure work. Of these totals, the city must pay $63,900 on December 31 of each year for preliminary closure work. At the end of 2020, the landfill reaches 4 percent of capacity. At the end of 2021, the landfill reaches 18 percent of capacity. At the end of 2021, a reassessment is made. Experts determine total closure costs will be $1.85 million rather than $1.65 million.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 13E: On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million....

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On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million. The promise to transfer the warehouse is determined to be a performance obligation. The contract states that if the warehouse is usable by November 30, 2019, Elkhart will receive a bonus of 600,000. For every week after November 30 that the warehouse is not usable, the bonus will decrease by 150,000. Elkhart provides the following completion schedule: Required: 1. Assume that Elkhart uses the expected value approach. What amount should Elkhart use for the transaction price? 2. Assume that Elkhart uses the most likely amount approach. What amount should Elkhart use for the transaction price? 3. Next Level What is the purpose of assessing whether a constraint on the variable consideration exists?
On January 1, 2020, the City of Hastings creates a solid waste landfill that it expects to reach capacity gradually over the next 20 years. If the landfill were to be closed at the current time, closure costs would be approximately $1.85 million plus an additional $790,000 for postclosure work. Of these totals, the city must pay $58,900 on December 31 of each year for preliminary closure work. At the end of 2020, the landfill reaches 6 percent of capacity. At the end of 2021, the landfill reaches 16 percent of capacity. At the end of 2021, a reassessment is made. Experts determine total closure costs will be $2.05 million rather than $1.85 million. a. Assume the city views the landfill as an enterprise fund. What journal entries should the city make in 2020 and 2021 in preparing government-wide financial statements? b. Assume the city views the landfill as being within the general fund. What journal entries should the city make in 2020 and 2021 in preparing government-wide financial…
On January 1, 2020, the City of Hastings creates a solid waste landfill that it expects to reach capacity gradually over the next 20 years. If the landfill were to be closed at the current time, closure costs would be approximately $1.88 million plus an additional $750,000 for postclosure work. Of these totals, the city must pay $63,500 on December 31 of each year for preliminary closure work. At the end of 2020, the landfill reaches 3 percent of capacity. At the end of 2021, the landfill reaches 11 percent of capacity. At the end of 2021, a reassessment is made. Experts determine total closure costs will be $2.08 million rather than $1.88 million. Assume the city views the landfill as an enterprise fund. What journal entries should the city make in 2020 and 2021 in preparing government-wide financial statements? Assume the city views the landfill as being within the general fund. What journal entries should the city make in 2020 and 2021 in preparing government-wide financial…
On January 1, 2017, the City of Hastings created a solid waste landfill that it expects to reach capacity gradually over the next 20 years. If the landfill were to be closed at the current time, closure costs would be approximately $1.2 million plus an additional $700,000 for postclosure work. Of these totals, the city must pay $50,000 on December 31 of each year for preliminary closure work. At the end of 2017, the landfill reached 3 percent of capacity. At the end of 2018, the landfill reached 9 percent of capacity. Also at the end of 2018, a reassessment is made; total closure costs are determined to be $1.4 million rather than $1.2 million.a. Assuming that the landfill is viewed as an enterprise fund, what journal entries are made in 2017 and 2018 on the government-wide financial statements?b. Assuming that the landfill is reported within the general fund, what journal entries are made in 2017 and 2018 on the government-wide financial statements?c. Assuming that the landfill is…
On January 1, 2017, the City of Hastings created a solid waste landfill that it expects to reach capacity gradually over the next 20 years. If the landfill were to be closed at the current time, closure costs would be approximately $1.2 million plus an additional $700,000 for postclosure work. Of these totals, the city must pay $50,000 on December 31 of each year for preliminary closure work. At the end of 2017, the landfill reached 3 percent of capacity. At the end of 2018, the landfill reached 9 percent of capacity. Also at the end of 2018, a reassessment is made; total closure costs are determined to be $1.4 million rather than $1.2 million. Assuming that the landfill is viewed as an enterprise fund, what journal entries are made in 2017 and 2018 on the government-wide financial statements? Assuming that the landfill is reported within the general fund, what journal entries are made in 2017 and 2018 on the government-wide financial statements? Assuming that the landfill is viewed…
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