Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 22 Jul 2017 My Price 6.00

municipal landfill

Enterprise fund, general fund. In 20X8, a city opens a municipal landfill, which it will account for in an enterprise fund. It estimates capacity to be six million cubic feet and usable life to be 20 years. To close the landfill, the municipality expects to incur labor, material, and equipment costs of $4 million. Thereafter, it expects to incur an additional $6 million of cost to monitor and maintain the site.

1. In 20X8, the city uses 300,000 cubic feet of the landfill. Prepare the journal entry to record the expense for closure and post-closure care.

2. In 20X9, it again uses 300,000 cubic feet of the landfill. It revises its estimate of available volume to 5.8 million cubic feet and closure and post-closure costs to $10.2 million. Prepare the journal entry to record the expense for closure and post-closure care.

3. Suppose the city accounts for the landfill in the general fund. How would the above entries for 20X8 and 20X9 differ?

Answers

Maurice Tutor
(5)
Status NEW Posted 22 Jul 2017 06:07 PM My Price 6.00

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