The City of Wetteville has a fiscal year ending June 30. Examine the following transactions for Wetteville:(A) On 6/5/18, Wetteville opens a new landfill. The engineers estimate that at the end of 10 years the landfill will be full. Estimated costs to close the landfill are currently $3,500,000.(B) On 6/18/18, Wetteville receives a donation of a vintage railroad steam engine. The engine will be put on display at the local town park. A fee will be charged to actually climb up into the engine. The engine has been valued at $500,000.(C) On 6/30/18, Wetteville estimates that the landfill is 2% filled.Determine and prepare the journal entries for the City of Wetteville, in the general fund, on the dates mentioned for each lettered item, for the purposes of preparing the fund financial
statements.
What will be an ideal response?
Entries for general fund for preparing fund financial statements
| A) 6/5 | No entry at date of opening | ||
| B) 6/18 | No entry in the general fund, because there is no change in current financial resources | ||
| C) 6/30 | No entry unless cash is being paid in the near future | ||
| to cover the future expected cost. | |||
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