Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 9

On January 1, 2013, 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 2013, the landfill reached 3 percent of capacity. At the end of 2014, the landfill reached 9 percent of capacity. Also at the end of 2014, 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 2013 and 2014 on the government-wide financial statements
b. Assuming that the landfill is reported within the general fund, what journal entries are made in 2013 and 2014 on the government-wide financial statements
c. Assuming that the landfill is viewed as an enterprise fund, what journal entries are made in 2013 and 2014 on fund financial statements
d. Assuming that the landfill is reported within the general fund, what journal entries are made in 2013 and 2014 on fund financial statements