Why is the production of accounting records important?

How would you record in accounting records the donation of land (a capital asset) to a city.?

• I am working on an accounting assignment. What would the journal entries look like for both the General Fund and Governmental Activities ledge for the donation of land look like?

• Answer:

  Who would ever donate land to a government? That's crazy. However, if it were to take place, it's pretty basic. It would simply be a debit to the land account for the fair market value of the land, with a credit to a Gain on acquisition of land. Were that gain would be put, depends on who would donate it. It would most likely be put on the income statement under non-operating income.