The City of Grinders Switch maintains its books in a manner thatfacilitates the preparation of fund accounting statements and usesworksheet adjustments to prepare government-wide statements.

1. General fixed assets as of the beginning of the year, which hadnot been recorded, were as follows:

Land	$	7,698,000
Buildings		33,389,700
Improvements Other Than Buildings		14,835,500
Equipment		11,566,000
Accumulated Depreciation, Capital Assets		25,326,400

2. During the year, expenditures for capital outlays amounted to$7,508,000. Of that amount, $4,805,100 was for buildings; theremainder was for improvements other than buildings.
3. The capital outlay expenditures outlined in (2) were completedat the end of the year (and will begin to be depreciated nextyear). For purposes of financial statement presentation, allcapital assets are depreciated using the straight-line method, withno estimated salvage value. Estimated lives are as follows:buildings, 40 years; improvements other than buildings, 20 years;and equipment, 10 years.
4. In the governmental funds Statement of Revenues, Expenditures,and Changes in Fund Balances, the City reported proceeds from thesale of land in the amount of $600,800. The land originally cost$505,800.
5. At the beginning of the year, general obligation bonds wereoutstanding in the amount of $4,009,000. Unamortized bond premiumamounted to $26,000. Note: This entry is not covered in the text,but is similar to entry 9 in the chapter.
6. During the year, debt service expenditures for the yearamounted to: interest, $837,600; principal, $594,900. For purposesof government-wide statements, $2,600 of the bond premium should beamortized. No adjustment is necessary for interest accrual.
7. At year-end, additional general obligation bonds were issued inthe amount of $2,455,500, at par.