P$10-47$ Modified approach$-$ infrastructure asset reporting

The city of Wesley adopted the modified approach for reporting its roads and bridges.

The city met the GAAP requirements for having an asset management system, making periodic assessments,

and estimating the annual amount needed to maintain the roads and bridges. Based on the data

below $1)$ prepare journal entries to record transactions in the city's governmental funds $2)$

prepare adjusting entries to report roads and bridges in the city's government wide statements

for the year ending Dec $31,2022$

a$)$ at Dec $31,2021$ the city's infrastructure assets had an acquisition value of $$11,600.$ Because the

city retroactively adopted the modified approach, no accumulated depreciation is reported.

b$)$ the city had $$1,845$ of preservation expenditures in $2022$

c$)$ the city paid $$725,000$ to contractors in $2022$ to add two additional lanes to it s $49$th St bridge