The City of Athens Operates a Motor Pool Serving All

Essay

The City of Athens operates a motor pool serving all city-owned vehicles. The motor pool bought a new garage by paying $34,000 in cash and signing a note with the local bank for $320,000. Subsequently, the motor pool performed work for the police department at a cost of $19,000, which had not yet been collected. Depreciation on the garage amounted to $24,000. The first $14,000 payment made on the note included $5,200 in interest.Required:Prepare the journal entries for these transactions that are necessary to prepare government-wide financial statements.