A city government adds street lights within its boundaries at a total cost of $253,500. The...

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A city government adds street lights within its boundaries at atotal cost of $253,500. The lights should burn for at least 13years but can last significantly longer if maintained properly. Thecity sets up a system to monitor these lights with the goal that 97percent will be working at any one time. During the year, the cityspends $42,000 to clean and repair the lights so that they areworking according to the specified conditions. However, it spendsanother $96,600 to construct lights for several new streets in thecity.
Prepare the entries assuming infrastructure assets arecapitalized with depreciation recorded.
Prepare the entries assuming infrastructure assets capitalizedwith government using the modified approach.

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1Journal entries assuming infrastructure assets are capitalized with depreciation recorded a General Journal Debit Credit Infrastructure asset street light 253500 Cash 253500 To record cost of street light b See Answer

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