Chapter 2 Opening the Books

The City of Bingham has installed a dual-track computerized accounting system, which provides files for general journal entries and posting to appropriate general ledger/subsidiary ledger accounts. Budgetary, operating statement, and balance sheet accounts are provided for the General Fund and the other governmental fund types. Operating statement accounts and balance sheet accounts are also provided for governmental activities at the government-wide level. To begin this case, you must enter the citys initial accounting information as of December 31, 2022, so that all transactions can be recorded for the next fiscal year beginning January 1, 2023.

Required

First, be sure to read the User Guide to understand the general instructions on how to navigate and use this application. Open the City of Bingham software by clicking on the MHECitiesSmithvilleBingham program.

If creating a new project, click Create New Project, when the Create New Project window appears choose the Bingham icon. In addition, in the Your name field type in your first and last name so that your name will appear on all printable reports and click the [Create] button. This will create the project and provide access to all of the funds and accounts that you will need to complete the City of Bingham cumulative problem.

To protect yourself from possible hard drive failure or loss of your project data file, we recommended that you save your file to not only your hard drive but also another location (e.g., the cloud), creating a dated backup file for your project at the end of each session.

To open an existing project, click on Open Project in the opening window or select the project from the Recent projects list.

1. If it is not already displayed, select [General Fund] in the Current accounting entity window and the [Accounts] tab. Clicking on the [Accounts] tab allows you to see the chart of accounts that will be used for the [General Fund]. A different chart of accounts is provided for each of the accounting entities. Next, select the [Journal] tab and click the [Add new entry] button. Click on [Select account or search by account name or number] in the [Account] column. You should see the same general ledger accounts that were listed when you clicked on the [Accounts] tab. (Note: For purposes of this exercise, date suffixes are omitted from the Expenditures and Encumbrances accounts as expenditures occur only from a single years appropriations.)

2. The trial balance for the General Fund of the City of Bingham as of December 31, 2022, is shown below. Select the [Journal] tab and create a journal entry to enter the balance sheet accounts and amounts shown in the trial balance. To create an entry start by clicking on [Add new entry]. Select the desired account name from

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the drop down [Account] window. Be sure to enter 2022 from the drop-down [Year] menu and enter the paragraph number from these instructions in the [Add description] box of the [Journal]. For this entry you should enter 2b. Select the appropriate accounts individually and insert the appropriate amounts. (Note: Enter all dollar amounts without dollar signs, commas, and decimal points. All amounts in this project should be rounded to the nearest whole dollar. For all entries, it is vitally important that the correct year be selected.)

You enter each account and amount one line at a time by clicking [Add]. The [Add] button will not be active if information for the entry is missing (e.g., the transaction description is missing.)

The year and transaction description need only be entered for the first line of the journal entry; it should remain in the boxes for the rest of the accounts. When you have completed entering all account data and amounts, verify the accuracy of all your entries, including date and paragraph numbers. When you are sure that your entries are correct, click [Post entries] to post the items to the general ledger of the General Fund.

CITY OF BINGHAM General Fund Post-closing Trial Balance As of December 31, 2022

Unpost capability. As mentioned in the User Guide page, the City of Bingham software program permits students to unpost a particular batch of posted transactions. Unposted entries then can be edited and reposted. In addition, any omitted entries can be inserted above a selected journal line in any unposted batch of entries. Prior to unposting a batch all batches must be posted.

Select [Reports>Trial Balances>Post-Closing Trial Balance] and print or save as a .pdf file the post-closing trial balance for year 2022. Retain the printed trial balance

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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

in your personal cumulative folder until the due date assigned by your instructor for the project, or submit a saved version of the trial balance electronically if directed to do so by your instructor.

c. Select [Debt Service Fund] in the [Current Accounting Entity] drop-down menu and the [Accounts] tab. Enter the following ending balances for the year 2022 and enter 2c in the transaction description box.

4. Select [Governmental ActivitiesGovernment-Wide] in the [Current Accounting Entity] drop-down menu and the [Accounts] tab. You will see all of the accounts included in the trial balance below, plus many other accounts that will be used in the various chapters of the City of Bingham project.

5. Select the [Journal] tab and create a journal entry to enter the statement of net position (i.e., balance sheet) accounts and amounts shown in the following trial balance. It is necessary to enter these items in the accounts of the governmental activities category at the government-wide level as the general journal and general ledger for governmental activities comprise a separate set of books from those for the General Fund. Be sure to enter 2022 from the dropdown menu in the [Year] column and enter 2e in the [Add description] field in the [Description] column. Select each account individually and insert the appropriate debit or credit amount for each account. When you have completed entering the initial data, verify the accuracy of all entries and click [Post entries] to post the entries to the governmental activities, government-wide general ledger.

5 2022 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in

any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

CITY OF BINGHAM Governmental Activities, Government-wide Level Post-closing Trial Balance As of December 31, 2022

e. Select [Reports>Trial Balances>Post-Closing Trial Balance] and save the trial balance for 2022.

Before closing the City of Bingham it is recommended that you save a backup copy of your work to another location by clicking on [File] and [Save As] for Windows and Mac. Click on Export my Project if you are using the Chromebook version.

For Submission:

• 2022 Post-closing trial balance for the General Fund

• 2022 Post-closing trial balance for the Debt Service Fund

• 2022 Post-closing trial balance for the government-wide Governmental Activities

  (Note: The current assets and liabilities on the governmental activities trial balance are the sum of those from the two funds).