Garfield County operates a solid waste landfill that is accounted for as an enterprise fund. At the end of 2013, the Landfill Enterprise Fund had a liability for landfill closure and postclosure care costs of $50,000. The county estimated the total costs associated with closing and monitoring the landfill as listed below.

(a) Calculate the estimated total current cost of postclosure care as of year-ends 2014 and 2015 .

(b) Calculate current period expenses for year-ends 2014 and 2015 .

(c) Prepare the required journal entries at year-ends 2014 and 2015 to recognize the current period expenses. Be sure to show all of your work.

…………………………………………… 2014 2015

Costs

Equipment to be installed………………$3.5 million………$3.0 million

Final cover……………………………...$0.5 million………$1.0 million

Monitoring and maintaining……………$4.0 million………$5.0 million

Capacity used…………………………..30,000……………58,000

Estimated total capacity………………..600,000…………..580,000

Answer rating: 100% (QA)

a Estimated total current cost of closure and postclos... View the full answer