Completing Chapters 2 through 6 and Chapter 9 of the Short Version of the City of Smithville Cumulative Problem Foreword This short version of the cumulative problem presents a series of transactions covering activities for the City of Smithville, assuming the city utilizes the dual-track accounting approach to the GASB reporting model described in Reck, Lowensohn, and Neely, Accounting for Governmental \& Nonprofit Entities, 19th edition. The transactions presented relate to the city's General Fund, capital projects, and debt service funds, as well as an additional accounting entity, governmental activities at the government-wide level. The transactions and instructions in this series are designated Chapter 2, Chapter 3, etc., corresponding to the chapters of Reck, Lowensohn, and Neely, Accounting for Governmental \& Nonprofit Entities, 19 th edition. You should begin the project with Chapter 2 of the instructions as you complete Chapter 2 of the textbook. Some problems require you to print trial balances or other documents. Other problems require the preparation of financial statements or other documents. The specified documents can either be turned in chapter by chapter or retained in a cumulative folder until the end of the project, depending on your instructor's preference and instructions. Some instructors may prefer that you electronically submit your project data file via Excel or .pdf files containing your trial balances, financial statements, and other documents, rather than submitting printed copies. To minimize errors, you should read and follow all instructions carefully. Students find that this computerized cumulative problem significantly enhances their learning if they complete each City of Smithville chapter as the corresponding chapter of the textbook is covered. Conversely, students who procrastinate often find that the project takes more time than they expected and that it is harder to recall how to make the journal entries covered in the earlier chapters. Thus, delaying until your project is nearly due may increase the total time it takes you to complete the project and leave you little time for anything else that week. So, our advice is to stay current with the project. Chapter 2 Opening the Books The City of Smithville just implemented 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. As the city's new accountant, it is your job to enter the city's initial accounting information as of December 31 , 2022, in preparation for placing the new accounting system in full operation effective January 1, 2023. Required Open the City of Smithville software by clicking on the MHECitiesofSmithvilleBingham program. Access the instructions for the Short Version of the City of Smithville project by clicking on [Instructions] in the opening screen of the application and then [Smithville] which appears at the top of the window. When you click on [Smithville] a dropdown menu appears that will allow you to select the short version of the instructions. If creating a new project, click "Create New Project," when the "Create New Project" window appears choose the "Smithville" icon. In addition, in the "Your name" field type your first and last name so that it will appear on all printable reports and then click [Create] button. This will create the project and provide all of the funds and accounts that you will need to complete the Short Version City of Smithville cumulative problem. To protect yourself from possible hard drive failure or corruption of your project data file, we recommend that you save your file to not only your hard drive but also another location (e.g., flash drive or the cloud), creating a 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. a. 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 and then click on [Select account or search by account name or number] in the [Account] column. You will see the same general ledger accounts that were listed when you clicked on the [Accounts] tab. For purposes of this exercise, date suffixes are omitted from the Expenditures and Encumbrances accounts as expenditures occur only from a single year's appropriations. You will not use all accounts listed for the short version project. In addition, you will notice certain entities (the Solid Waste Disposal Fund and Tax Custodial Fund) that are used in the full version of the City of Smithville project but not in the short version. You should ignore these entities. b. The trial balance of the General Fund of the City of Smithville as of December 31,2022, is shown in the following trial balance. 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 or type in the desired account name from the dropdown in the [Account] column. Be sure to enter 2022 from the dropdown in the [Year] column and enter the paragraph number from these instructions in the [Add description] field in the [Description] column of the [Journal]. For this entry, you should enter 2-b. Select the appropriate accounts individually and insert the appropriate amounts. (Note: You should enter all dollar amounts without dollar signs, commas, and decimal points. 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 will remain in the boxes for the rest of the accounts. When you have completed entering all account data and amounts, verify all of 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 SMITHVILLE General Fund Post-closing Trial Balance As of December 31, 2022 Unpost capability. As mentioned in the "User Guide" file, the City of Smithville software program permits students to "unpost" a particular batch of posted transactions. Unposted entries then can be edited and re-posted. In addition, any omitted entries can be inserted above or below a selected balance sheet account 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 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. Select [Governmental Activities, Government-wide Level] in the "Current accounting entity" dropdown field and the [Accounts] tab. You will see most of the accounts included in the preceding trial balance, plus many other accounts that will be used in the various chapters of the City of Smithville project. 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 governmentwide 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 2-d in the [Add description] field of 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 and click [Post entries] to post the entry to the governmental activities, governmentwide general ledger CITY OF SMITHVILLE Governmental Activities Government-wide Level Post-closing Trial Balance As of December 31, 2022 Due to Federal Government 135,720 Due to State Government 32,600 Net Position-Net Investment in Capital Assets 17,624,376 Net Restricted for Public Safety 114,000 Net Position-Unrestricted \begin{tabular}{lrr} Net Position-Unrestricted & 376,235 \\ \hline Totals $24,822,497 & $24,822,497 \\ \hline \hline \end{tabular} Select [Reports>Trial Balances>Post-Closing Trial Balance] and print the post-closing trial balance for 2022 or submit a saved .pdf version of the trial balance electronically if directed to do so by your instructor. Retain in your cumulative file until the due date for your project or the time specified by your instructor. Completing Chapters 2 through 6 and Chapter 9 of the Short Version of the City of Smithville Cumulative Problem Foreword This short version of the cumulative problem presents a series of transactions covering activities for the City of Smithville, assuming the city utilizes the dual-track accounting approach to the GASB reporting model described in Reck, Lowensohn, and Neely, Accounting for Governmental \& Nonprofit Entities, 19th edition. The transactions presented relate to the city's General Fund, capital projects, and debt service funds, as well as an additional accounting entity, governmental activities at the government-wide level. The transactions and instructions in this series are designated Chapter 2, Chapter 3, etc., corresponding to the chapters of Reck, Lowensohn, and Neely, Accounting for Governmental \& Nonprofit Entities, 19 th edition. You should begin the project with Chapter 2 of the instructions as you complete Chapter 2 of the textbook. Some problems require you to print trial balances or other documents. Other problems require the preparation of financial statements or other documents. The specified documents can either be turned in chapter by chapter or retained in a cumulative folder until the end of the project, depending on your instructor's preference and instructions. Some instructors may prefer that you electronically submit your project data file via Excel or .pdf files containing your trial balances, financial statements, and other documents, rather than submitting printed copies. To minimize errors, you should read and follow all instructions carefully. Students find that this computerized cumulative problem significantly enhances their learning if they complete each City of Smithville chapter as the corresponding chapter of the textbook is covered. Conversely, students who procrastinate often find that the project takes more time than they expected and that it is harder to recall how to make the journal entries covered in the earlier chapters. Thus, delaying until your project is nearly due may increase the total time it takes you to complete the project and leave you little time for anything else that week. So, our advice is to stay current with the project. Chapter 2 Opening the Books The City of Smithville just implemented 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. As the city's new accountant, it is your job to enter the city's initial accounting information as of December 31 , 2022, in preparation for placing the new accounting system in full operation effective January 1, 2023. Required Open the City of Smithville software by clicking on the MHECitiesofSmithvilleBingham program. Access the instructions for the Short Version of the City of Smithville project by clicking on [Instructions] in the opening screen of the application and then [Smithville] which appears at the top of the window. When you click on [Smithville] a dropdown menu appears that will allow you to select the short version of the instructions. If creating a new project, click "Create New Project," when the "Create New Project" window appears choose the "Smithville" icon. In addition, in the "Your name" field type your first and last name so that it will appear on all printable reports and then click [Create] button. This will create the project and provide all of the funds and accounts that you will need to complete the Short Version City of Smithville cumulative problem. To protect yourself from possible hard drive failure or corruption of your project data file, we recommend that you save your file to not only your hard drive but also another location (e.g., flash drive or the cloud), creating a 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. a. 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 and then click on [Select account or search by account name or number] in the [Account] column. You will see the same general ledger accounts that were listed when you clicked on the [Accounts] tab. For purposes of this exercise, date suffixes are omitted from the Expenditures and Encumbrances accounts as expenditures occur only from a single year's appropriations. You will not use all accounts listed for the short version project. In addition, you will notice certain entities (the Solid Waste Disposal Fund and Tax Custodial Fund) that are used in the full version of the City of Smithville project but not in the short version. You should ignore these entities. b. The trial balance of the General Fund of the City of Smithville as of December 31,2022, is shown in the following trial balance. 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 or type in the desired account name from the dropdown in the [Account] column. Be sure to enter 2022 from the dropdown in the [Year] column and enter the paragraph number from these instructions in the [Add description] field in the [Description] column of the [Journal]. For this entry, you should enter 2-b. Select the appropriate accounts individually and insert the appropriate amounts. (Note: You should enter all dollar amounts without dollar signs, commas, and decimal points. 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 will remain in the boxes for the rest of the accounts. When you have completed entering all account data and amounts, verify all of 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 SMITHVILLE General Fund Post-closing Trial Balance As of December 31, 2022 Unpost capability. As mentioned in the "User Guide" file, the City of Smithville software program permits students to "unpost" a particular batch of posted transactions. Unposted entries then can be edited and re-posted. In addition, any omitted entries can be inserted above or below a selected balance sheet account 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 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. Select [Governmental Activities, Government-wide Level] in the "Current accounting entity" dropdown field and the [Accounts] tab. You will see most of the accounts included in the preceding trial balance, plus many other accounts that will be used in the various chapters of the City of Smithville project. 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 governmentwide 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 2-d in the [Add description] field of 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 and click [Post entries] to post the entry to the governmental activities, governmentwide general ledger CITY OF SMITHVILLE Governmental Activities Government-wide Level Post-closing Trial Balance As of December 31, 2022 Due to Federal Government 135,720 Due to State Government 32,600 Net Position-Net Investment in Capital Assets 17,624,376 Net Restricted for Public Safety 114,000 Net Position-Unrestricted \begin{tabular}{lrr} Net Position-Unrestricted & 376,235 \\ \hline Totals $24,822,497 & $24,822,497 \\ \hline \hline \end{tabular} Select [Reports>Trial Balances>Post-Closing Trial Balance] and print the post-closing trial balance for 2022 or submit a saved .pdf version of the trial balance electronically if directed to do so by your instructor. Retain in your cumulative file until the due date for your project or the time specified by your instructor