The City of Nextville Operates a Motor Pool Serving All

Essay

The city of Nextville operates a motor pool serving all city-owned vehicles.The motor pool bought a new garage by paying $29,000 in cash and signing a note with the local bank for $280,000.Subsequently,the motor pool performed work for the police department at a cost of $17,000,which had not yet been paid.Depreciation on the garage amounted to $20,000.The first $12,000 payment made on the note included $4,800 in interest.
Required:
Prepare all of the journal entries for these transactions that are necessary to prepare government-wide financial statements.