Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 4

On January 1, 2010, 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 2010, the landfill reached 3 percent of capacity.At the end of 2011, the landfill reached 9 percent of capacity.Also at the end of 2011, 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 2010 and 2011 on the government-wide financial statements
b.Assuming that the landfill is reported within the general fund, what journal entries are made in 2010 and 2011 on the government-wide financial statements
c.Assuming that the landfill is viewed as an enterprise fund, what journal entries are made in 2010 and 2011 on fund-based financial statements
d.Assuming that the landfill is reported within the general fund, what journal entries are made in 2010 and 2011 on fund-based financial statements