Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert N Page Layout References S Mailings Review View Add Text Ury Insert Endnote M R WI PDE Y1 Foxit Reader PDF Foxit PD Y2 V3 B! Update Table AB' 3i Manage Sources Insert Table of Figures Insert Index Table of Insert Next Footnote Le Style: APA Fifth 24 Insert Table of Authorities By Update Table Update Table Contents Footnote Show Notes nsert By Update Index Citation . Bibliography Insert Caption [ Cross-reference Mark Mark Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L . . . 1 . . . 1 Instructions City of Smithville Short Version Computerized Cumulative Problem 7 . . . I . . . For use with McGraw-Hill Education Accounting for Governmental & Nonprofit Entities 18th Edition Page: 1 of 24 Words: 7,319 100% +Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Review Foxit PD N Page Layout References Mailings View Add Text S R WI PDE Y1 Foxit Reader PDF M Y2 V3 ! Update Table AB' Ury Insert Endnote 3i Manage Sources Insert Table of Figures Insert Index 224 Insert Table of Authorities Table of Insert Next Footnote De Style: APA Fifth By Update Table Update Index Update Table Contents Footnote Show Notes nsert Citation - Bibliography Insert Caption [ Cross-reference Mark Mark Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L After opening the data file containing your data from Chapters 2 and 3 of this project, record the following transactions in the general journal for the General Fund and, if applicable, in the general journal for governmental activities at the government-wide level. For all entries, the date selected should be year 2020. For each of the paragraphs that requires entries in both the General Fund and governmental activities journals, you can either record them in both journals on a paragraph-by-paragraph basis or, alternatively, record all the General Fund journal entries first for all paragraphs, then complete the governmental activities journal entries for all paragraphs. If you choose the latter method, it might be useful to print the General Fund general journal entries to assist in making the entries in the governmental activities journal. Regardless of the method you choose, we highly recommend that you refer to the illustrative journal entries in Chapter 4 of the Reck, Lowensohn, and Neely textbook (18th edition) for guidance in making all entries. For each entry affecting budgetary accounts or operating statement accounts, you will be directed to the Detail Journal to record the appropriate amounts in the detail budgetary or actual accounts as was the case in Chapter 3. 1. [Para. 4-a-1] On January 2. 2020, real property taxes were levied for the year in the amount of $1,878.700. It was estimated that 2 percent of the levy would be uncollectible Required: Record this transaction in both the General Fund and governmental activities journal. (Note: Type 4-a-1 as the paragraph number in the [Add description] field for this entry; 4-a-2 for the next transaction, etc. Careful referencing by paragraph number is very helpful should you need to determine where you may have omitted a required journal entry or may have made an error.) For the General Fund only you will be directed to the Detail Journal where you will select "Accrued Revenue" in the drop down [Description] menu when recording property tax revenue. 2. [Para. 4-a-2] Encumbrances were recorded in the following amounts for purchase orders issued against the appropriations indicated: General Government $135,673 Public Safety 386,652 Public Works 180,804 Culture and Recreation 126,599 10 @2019 by McGraw-Hill Education. 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, orposted on a website, in whole or part. Page: 10 of 24 |Words: 7,319 100%Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View PDF Foxit Reader PDF Foxit PDF Add Text ABI my Insert Endnote Bij Manage Sources Insert Table of Figures Insert Index 24 Insert Table of Authorities Table of B! Update Table Insert Next Footnote Le Style: APA Fifth By Update Table Footnote Show Notes Insert Citation . Bibliography Insert Caption Cross-reference Mark BY Update Index Mark Update Table Contents Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L Total $829,728 Required: Record the encumbrances in the General Fund generaljournal and Detail Joumal as appropriate. In the Detail Joumal, select "Purchase orders" from the drop down [Description] menu. 3. [Para. 4-a-3] Cash was received during the yearin the total amount of $4,028,058 for collections from the following receivables and cash revenues, as indicated Current Property Taxes $1,488,206 Delinquent Property Taxes 387,201 Interest and Penalties Receivable on Taxes 34.270 Due from State Government 165,000 Revenues: (total: $1,953,381) Licenses and Permits 477,960 Fines and Forfeits 211,106 Intergovernmental 639,000 Charges for Services 625.315 Total $4,028 058 Required: Record the receipt of cash and the related credits to receivables and revenues accounts, as applicable, in both the General Fund and governmental activities joumals. (Select "Received in cash" in the drop down [Description] menu in the Detail Joumal related to the General Fund revenue entries. Forpurposes of the governmental activities entries at the government-wide level assume the following revenue classifications: General Fund Governmental Activities Licenses and Permits Program Revenues-General Goverment- Charges for Service Fines and Forfeits Program Revenues-General Government- Charges for Services Intergovemmental Program Revenues-Public Safety-Operating Grants and Contributions Charges for Services Program Revenues-General Goverment- Charges for Services, $343,924 Program Revenues-Culture and Recreation- Charges for Services, $281,39 [Para. 4-a-4] Of the $387,201 in delinquent property taxes collected in transaction 4-a-3 $76,994 had been recordedin the Deferred Inflows of Resources account. Additionally, $7,840 of the interest and penalties collected in 4-a-3 had also beenrecorded as deferredinflows of resources Page: 11 of 24 |Words: 7,319 10 80% +Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View PDF Foxit Reader PDF Foxit PDF Add Text ABI my Insert Endnote Bij Manage Sources Insert Table of Figures Insert Index 24 Insert Table of Authorities Table of B! Update Table Insert Next Footnote Insert Le Style: APA Fifth Insert By Update Table BY Update Index Footnote Show Notes Caption Cross-reference Mark Update Table Contents Citation - Bibliography Mark Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L Required: In the General Fund recognize the property tax revenues and the interest and penalties revenues related to the deferred inflows of resources. To do this debit the Deferred Inflows of Resources account and credit related property tax revenues and interest andpenalties revenues. Select "Previous Deferral" in the [Description] menu in the Detail Joumal. Under accrual accounting the deferral was not recognized in the govemmental activities joumal; therefore, there is no need to record a journal entry in the govemmental activities journal. 5. [Para. 4-a-5] General Fund payrolls for the yeartotaled $3, 179,547. Of that amount, $667,705 was withheld for employees' federal income taxes; $453,291 for federal payroll taxes; $238,466 for retirement funds administered by the state government; and the remaining $1,820,085 was paid to employees in cash. The City of Smithville does not record encumbrances for payrolls. The payrolls were chargeable against the following functions General Goverment $ 663,678 Public Safety 1,539,302 Public Works 542,765 Culture and Recreation 433.802 Total $3,179,547 Required: Make summary joumal entries for payroll in both the General Fund and governmental activities general joumals for the year. 6. [Para. 4-a-6] Invoices for some of the goods recorded as encumbrances in transaction 4-a-2 were received and vouchered forpayment, as listed below. Related encumbrances were canceled in the amounts listed below (Select "Elimination" in the drop down [Description] menu in the Detail Journal): Expenditures Encumbrances General Government $130,606 $ 130,572 Public Safety 366,088 366,154 Public Works 141,981 141,972 Culture and Recreation 125.965 Total 126.000 $764,675 $764,663 Required: Record the receipt of these goods and the related vouchers payable in both the General Fund and governmental activities joumals. In the Detail Joumal select "Good received" for the expenditures description At the goverment-wide level, you should assume the city uses the periodic inventory method Thus, the invoiced amounts above should be recorded as expenses of the appropriate functions, except that $32,340 of the amount charged to the Public Works level). function was for a vehicle (debit Equipment for this item at the goverment-wide 2019 by MoGraw-Hill Education This is proprietary material solely for authorized instructor use Not authorized for sale or 12 distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in Page: 11 of 24 |Words: 7,319 1 80%Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View PDF Foxit Reader PDF Foxit PDF Add Text ABI my Insert Endnote Bij Manage Sources Insert Table of Figures Insert Index 24 Insert Table of Authorities Table of B! Update Table Insert Next Footnote Le Style: APA Fifth By Update Table Update Index Update Table Contents Footnote Show Notes Insert Citation - Bibliography Insert Caption Cross-reference Mark Mark Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L 7. [Para. 4-a-7] During FY 2020, the City of Smithville received notification that the state government would send $130,000 at the beginning of the next fiscal year. Based on the city's definition of "available for use," the city considers the funds available for General Goverment's use in the current reporting period. The budget for the current year included this amount as "Intergovernmental Revenue." Required: Record this transaction as a receivable andrevenue in the General Fund and governmental activities joumals. (Note: Select "Accrued Revenue" in the [Description] menu in the Detail Joumal). At the goverment-wide level, assume that this item is an operating grant to the Culture and Recreation function 8. [Para. 4-a-8] Checks were written in the total amount of $2,096,571 during 2020. These checks were in payment of the following items: Vouchers Payable $ 700,000 Due to Federal Government 1,131,506 Due to State Government 265.065 Total amountpaid $2,096,571 Required: Record the payment of theseitems in both the General Fund and govemmental activities general joumals. 9. [Para. 4-a-9] Current taxes receivable uncollected atyear-end, andthe related Allowance for Uncollectible Current Taxes account, were both reclassified as delinquent. Of the amount classified as delinquent it was determined $87,010 would not be collected within 60 days of the fiscal year end and would therefore be unavailable for use in the current period. As a result, this amount was reclassified as deferred inflows of resources. Required: Record the reclassification of the current taxes receivable and related allowance for uncollectible account in the General Fund and governmental activities journal Reclassify $87,010 of property taxrevenue to the Deferred Inflows of Resources account in the General Fundjoumal only. (Note: To accomplish the reclassification of revenue, debit the revenue account and credit deferred inflows of resources. Select "Deferral" in the [Description] menu in the Detail Joumal.) 10. [Para. 4-a-10] Interest andpenalties receivable on delinquent taxes was increased by $40,500; $3,248 of this was estimated as uncollectible and $8,910 was considered unavailable for use in the current fiscal year. Required: Record this transaction in the General Fund and governmental activities joumals as a revenue transaction The $8,910 classified as unavailable @ 2019 by MoGraw-Hill Education This is proprietary material solely for authorized instructor use. Not authorized for sale or 13 Page: 11 of 24 |Words: 7,319 1 80% +Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View PDF Foxit Reader PDF Foxit PDF Add Text ABI my Insert Endnote Bij Manage Sources Insert Table of Figures Insert Index 24 Insert Table of Authorities Table of B! Update Table Insert Next Footnote Footnote Show Notes Insert Le Style: APA Fifth Citation . Bibliography Insert By Update Table Caption Cross-reference Mark Update Index Mark Update Table Contents Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L for use is recorded as deferred inflows of resources in the General Fundjoumal and as revenue in the governmental activities joumal. Post all journal entries to the ledgers: Afterreviewing all entries for accuracy, including year and paragraphnumbers, post all entries to the general ledger accounts and to all subsidiary ledger accounts, by clicking on [Post entries]. Also post all entries in the governmental activities journal 11. Closing Entry. Following the instructions in the next paragraph, prepare and post the necessary entries to close the General Fund Estimated Revermes and Appropriations accounts to Budgetary Fund Balance, and Revenues and Expenditures to Fund Balance-Unassigned. Because the City of Smithville honors all outstanding encumbrances at year-end, it is not necessary to close Encumbrances to Encumbrances Outstanding at year-endsince encumbrances do not affect the General Fund balance shee atement of revenues, expenditures and changes in fund balances. If, however, you would like to avoid having these accounts appear in the post-closing trial balance, you can optto close Encumbrances to Encumbrances Outstanding. If the accounts are closed, they would need to be reestablished at the beginning of the next year. To close the temporary accounts, you must click the box for [Closing Entry] that appears when you [Add new entry]. "Closing Entry" will appearin the [Add credit] field. Be sure the check mark in the box for [Closing Entry] is showing before closing each individual account. Also, you will be sent to the Detail Joumal where you must close each individual budgetary or operating statement account. To determine the closing amounts for both General Ledger and subsidiary ledger accounts, you will need to print the pre-closing version of these ledgers for year 2020 from the [Reports] menu. At year-end, an analysis by the city's finance department determined the following constraints on fund balances in the General Fund. Prepare the appropriate closing reclassificationjournal entry in the General Fund to reclassify amounts between Fund Balance-Unassigned and the fund balance accounts corresponding to the constraints shown below. (Note: You should consider the beginning of year balances in fund balance accounts in calculating the amounts to be reclassified. Be sure the check mark in the box for [Closing Entry] is showing before closing each individual account.) Account Fund Balance-Restricted-General Government Ending Balance $36,000 Fund Balance-Committed-Public Works 12,700 Fund Balance-Assigned-Culture and Recreation Note: DONOT PREPARE CLOSING ENTRIESFOR GOVERNMENTAL ACTIVITIES AT THIS TIME since govemmental activities will not be closed until Chapter 9, after the capital projects fund (Chapter 5) and debtservice fund @ 2019 by McGraw-Hill Education This is proprietary material solely for authorized instructor use. Not authorized for sale or 14 distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Page: 11 of 24 |Words: 7,319 1 80% +Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View PDF Foxit Reader PDF Foxit PDF Add Text my Insert Endnote By Manage Sources Insert Table of Figures Insert Index 24 Insert Table of Authorities Table of B! Update Table ABI Insert Next Footnote Le Style: APA Fifth By Update Table Update Index Footnote Show Notes Insert Citation . Bibliography Insert Caption Cross-reference Mark Mark Update Table Contents Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L (Chapter 6) transactions affecting governmental activities at the government-wide level have been recorded. . Select [Export] from the drop down [File] menu to create an Excel worksheet ofthe General Fund post-closing trial balance as of December 31, 2020. Use Excel to prepare in good form a balance sheet for the General Fund as of December 31, 2020. Follow the format shown in Illustration 4-4 of Reck, Lowensohn, and Neely, Accounting for Governmental & Nonprofit Entities, 18th edition textbook (hereafter referred to as "the textbook.") c. Select [Export] from the drop down [File] menu to create an Excel worksheet ofthe General Fund pre-closing subsidiary ledger account balances for the year 2020. Use Excel to prepare in good form a statement of revenues, expenditures, and changes in fund balance for the General Fund for the year ended December 31, 2020. (See Illustration 4-5 in the textbook for an example format.) d. Use the Excel worksheet of the General Fund pre-closing subsidiary ledger account balances created in part c above to prepare in good form a schedule of revenues, expenditures, and changes in fund balance-budget and actual for the General Fund for the year ended December 31, 2020. (See Illustration 4-6 in the textbook for an example format.) Prepare a reconciliation of total expenditures reported in your solution to part c of this problem with the total expenditures and encumbrances reportedin your solution to part d of this problem. (In Chapter 4 below Illustration 4-3, see discussion and example which compares Illustrations 4-3 and4-6.) Note: File the printouts of all your worksheets and your completed financial statements in your cumulative problem folder until directed by your instructor to submit them, unless your instructor specifies submission of files electronically.] Before closing the City of Smithville 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. Clickon "Exportmy Project" if you are using Chromebook. 9 2019 by McGraw-Hill Education This is proprietary material solely for authorized instructor use. Not authorized for sale or 15 distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part." Page: 11 of 24 |Words: 7,319 1 80% +Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View PDF Foxit Reader PDF Foxit PDF Add Text my Insert Endnote Bij Manage Sources Insert Table of Figures Insert Index 24 Insert Table of Authorities Table of B! Update Table ABI Insert Next Footnote Insert Le Style: APA Fifth By Update Table Update Index Footnote Show Notes Citation . Bibliography Insert Caption Cross-reference Mark Mark Update Table Contents Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L Chapter 5 Recording Capital Asset Transactions Street Improvement Capital Projects Fund and Governmental Activities at the Government-wide Level During late 2019, the voters of the City of Smithville authorized tax-supported bond issues totaling $8,000,000 as partial financing for projects to construct the extension of streets and the related curbs, culverts, and stormsewers in the city. The estimated total cost of the projects, which are expected to extend over the next three years, was $11,200,000. In addition to the bond financing, voters also approved a special 1 cent sales tax to assist in financing the projects. The sales tax begins January 1, 2020 and wil continue for seven years. The sales tax is projected to generate $5 50,000 each year. Required a. Prepare generaljournal entries as necessary to record the transactions described belowin the Street Improvement Fund generaljoumal and if applicable, in the govemmental activities generaljournal. Do not record entries at this time in other affected funds; those entries will be made in the later chapters of this cumulative problem that cover the affected funds. Use account titles listed under the drop down [Account] menu. Be sure the year 2020 is selected from the drop-down [Year] menu and the appropriate paragraph number shown in bold-face font below is in the [Description] field. 1. [Para.5-a-1] In early 2020, design plans and specifications for the first project, the Elm Street Project, were submitted by a construction engineering firm. The firm billed the Street Improvement Fund for $150,000. Required: Record this billing and the related Vouchers Payable liability in the Street Improvement Fund and governmental activities journals. (Note: this transaction was not encumbered) 2. [Para. 5-a-2] On March 15, 2020, construction bids were opened and analyzed A bid of $2,400,000 was accepted, and the contract was awarded for the Elm Street Project. The contract provided for a retained percentage of 5 percent from each progress payment, and fromthe final payment, until final inspection and acceptance by the city's public works inspectors. Required: Record the signing of the contract in the Street Improvement Fund generaljoumal. This transaction has no effect at the government-wide level. 3. [Para. 5-a-3] On April 1, 2020, 2.5% deferred serial bonds with a face value of $2,000,000 were sold for a total amount of $2,032,500, of which $12,500 was for accrued interest fromthe January 1, 2020 date of the bonds and $20,000 was a premium on the bonds sold. Cash in the amount of the accruedinterest and premium was deposited directly in the Street Improvement Bond Debt Service 3 2019 by McGraw-Hill Education 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." Page: 11 of 24 |Words: 7,319 1 80%Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View PDF Foxit Reader PDF Foxit PDF Add Text B! Update Table ABI my Insert Endnote Bij Manage Sources Insert Table of Figures Insert Index 24 Insert Table of Authorities Table of Insert Next Footnote Footnote Show Notes Insert Le Style: APA Fifth Insert By Update Table Mark Update Index Citation . Bibliography Caption Cross-reference Mark Update Table Contents Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L Fund. Cash in the amount of$2,000,000 was deposited and recorded in the Street Improvement Fund Required: Record this transaction in the Street Improvement Fund and govemmental activities journals. (Hint: In addition to recording the liability for bonds payable in the governmental activities journal, you should record the premium on the bonds payable [credit Premium on Deferred Serial Bonds Payable] and accrued interest on bonds sold [we recommend that you credit Expenses-Interest on Long-term Debt] in the governmental activities general joumal for the $12,500 of accrued interest.) Fornow you should not make the entry in the Street Improvement Bond Debt Service Fund to record the accrued interest and premium That entry will be made in Chapter 6 of this cumulative problem. [Para. 5-a-4] Vouchers payable (see Transaction 1) were paid on April 20, 2020. Required: Record this transaction in both the Street Improvement Fund and governmental activities generaljournal 5. [Para. 5-a-5] In July 2020, the contractor for the Elm Street Project reported that the project was one-half completed andrequested a progress payment of $1,200,000. Required: Record the liability for the progress billing in both the Street Improvement Fund and governmental activities generaljournals. 6. [Para. 5-a-6] The billing for the partially completed Elm Street Project (see Transaction ) was paid in late July, less the contractual retention of5 percent. Required: Record this transaction in both the Street Improvement Fund and govemmental activities generaljoumals. [Para. 5-a-7] On December 10, 2020 the Elm Street Project was completed and the contractor for the project requested a final payment of $1,200,000. This amount was recorded as a liability Required: Record the liability for the final billing in both the Street Improvement Fund and governmental activities journals. S. [Para. 5-a-8] During the year sales taxes were collected in the amount of $560,000. Required: Make the summaryjoumal entries in both the Street Improvement Fund and governmental activities joumals to record the collection of sales taxes. @ 2019 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or 17 distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. " Page: 11 of 24 |Words: 7,319 1 80% +Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View PDF Foxit Reader PDF Foxit PDF Add Text B! Update Table ABI my Insert Endnote By Manage Sources Insert Table of Figures Insert Index 24 Insert Table of Authorities Table of Insert Next Footnote Insert Le Style: APA Fifth By Update Table BY Update Index Footnote Show Notes Citation - Bibliography Insert Caption Cross-reference Mark Mark Update Table Contents Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L 9. [Para. 5-a-9] Payment was made for the final billing on the Elm Street Project, less the retained percentage, on December 1, 2020. Required: Record this transaction in both the Street Improvement Fund and govemmental activities journals. 10. [Para. 5-a-10] Upon final inspection of the Elm Street Project, the city inspector determined that all work conformed to specifications. Retainedpercentages "Transactions 6 and 7) were paid to the contractor. Required: Record this transaction in both the Street Improvement Fund and govemmental activities joumals. Total construction expenditures for the Elm Street Project should be capitalized in the Infrastructure account in governmental activities. 11. Verify the accuracy of all your preceding entries in the Street Improvement Fund and governmental activities general joumals, then click [Post entries] of each entity to post the entries to the respective general ledgers. For the Street Improvement Fund only, prepare year-end closing entries for 2020 and postthem to the fund's generalledger. Accounts should be closed to Fund Balance- Restricted. (Note: You must click on the box for [Closing Entry] to check mark it; "Closing Entry" will appearin the [Add description] field for the account being closed. Be sure the check mark is present for each account being closed.) Click [Post entries] to post the closing entry. Cash remaining in the Street Improvement Fund at year-end is not transferred to the debtservice fund since other street improvement projects will be undertaken during the next two years Closing entries will be made in the govemmental activities generaljoumal in Chapter 9 of this cumulativeproblem Ignore those entries fornow. c. Export the post-closing trial balance for year 2020 to an Excel worksheet and use Excel to prepare a balance sheet for the Street Improvement Fund as of December 31, 2020. (See Illustration 4-4 in the textbook for an example of an appropriate format of a governmental fundbalance sheet.) In addition, save andprint the post-closing trial balance from the [Reports] drop-down men d. Export the pre-closing trial balance for year 2020 to an Excel worksheet and use Excel to prepare a statement of reveries, expenditures, and changes in fund balance for the Street Improvement Fund for the year ended December 31, 2020. (See Illustration 5-3 in textbook for an example of the format of a capital projects fund statement of revenues, expenditures and changes in fund balance.) Save andprint the pre-closing trial balance fromthe [Reports] drop-down mem Note: Retain all required printouts and your financial statements in your cumulative folder until directed by your instructor to submit them, unless your instructor prefers to have computer files submitted electronically, in which case you will need to save a .pdf version of your trial balance.] @ 2019 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distributionin any manner This document may notbe could scanned dunlicated forwarded distributed or posted ona website. in Page: 11 of 24 |Words: 7,319 1 80%Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View PDF Foxit Reader PDF Foxit PDF Add Text ABI my Insert Endnote Bij Manage Sources Insert Table of Figures Insert Index 24 Insert Table of Authorities Table of B! Update Table Insert Next Footnote Insert Le Style: APA Fifth Insert By Update Table Mark BY Update Index Mark Update Table Contents Footnote Show Notes Citation - Bibliography Caption Cross-reference Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L Chapter 6 Transactions Affecting General Long-term Liabilities and Debt Services The City of Smithville created a Street Improvement Bond Debt Service Fund to be used to retire the bonds issued for the purposes described in Chapter 3 of this cumulative problem, and to pay the interest on the bonds. The $2,000,000 face value of bonds issued during 2020 are dated January 1, 2020, but were not issued until April 1, 2020. Because bondholders will receive six months of interest on July 1, 2020 in the total amount of $25,000, they were required to pay $12,500 on the date of issue to pay the city for uneamedinterest from January 1 to April 1. The bonds bearinterest of 2.5 percent per annum The first interest payment of $23,000 is due July 1, 2020. Subsequent semiannual interest payments will be made January 1 andJuly 1 of each following year until the maturity of the bond. Bonds in the amount of $500,000 are to mature five years after the date of the bonds (January 1, 2025), and$100,000 is to mature January 1 of each year thereafter until all the bonds have beenretired. Thus, these bonds are deferred serial bonds as discussed in Chapter 6 of the textbook. Make entries as instructed in the following paragraphs Bond covenants related to this bond issue require the city to levy property taxes sufficient to make principal and interest payments until the bonds have been retired. The city council has approved a resolution to enable the propertytaxlevy, beginning in fiscal year 2021. As the bond issue did not occuruntil April 2020, the city will not levy debt service property taxes until next year. a. Prepare generaljournal entries, as necessary to record the transactions described belowin the Street Improvement Bond Debt Service Fund generaljoumal and, if applicable, in the govermental activities generaljoumal. Use account titles listed under the drop down [Account] menu. Be sure the year 2020 is selected from the drop-down [Year] menu and the appropriate paragraph number shown in bold-face font belowis in the [Add description] field. 1. [Para. 6-a-1] In early April 2020, an amendment to the annual budget for 2020 was approvedby the city council for inflows and outflows in the Street Improvement Bond Debt Service Fund related to the bond issue. The debt service fund budget amendment provides for estimated other financing sources of $20,000 for the premium on bonds sold and estimatedrevenues of $12,500 for accrued interest on bonds sold; and appropriations in the amount of the one July 1, 2020.) interest payment of$25,000 to be made during 2020. (The payment that is due on Required: Record the amended budget for the Street Improvement Bond Debt Service Fund for year 2020. Budgetary entries have no effect on the goverment- wide accounting records. 2019 by McGraw-Hill Education This is pro 20 Page: 11 of 24 |Words: 7,319 1 80% +Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View PDF Foxit Reader PDF Foxit PDF Add Text AB! may Insert Endnote Bij Manage Sources Insert Table of Figures Insert Index 224 Insert Table of Authorities Table of B! Update Table Insert Next Footnote Footnote Show Notes Insert Le Style: APA Fifth Insert By Update Table Mark Update Index Mark Update Table Contents Citation . Bibliography Caption Cross-reference Entry Citation Table of Contents Footnotes Citations & Bibliography aptions Index Table of Authorities L 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 written for the computer 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, 18th 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, 18th 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 do the project and leave you little time for anything else that week. So, our advice is to stay current with the project. Page: 3 of 24 Words: 7,319 % 1 = 100% +Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View PDF Foxit Reader PDF Foxit PDF Add Text my Insert Endnote Bij Manage Sources Insert Table of Figures Insert Index 24 Insert Table of Authorities Table of B! Update Table ABI Insert Next Footnote Insert Le Style: APA Fifth Insert By Update Table Caption [ Cross-reference Mark Update Index Footnote Show Notes Citation . Bibliography Mark Bit Update Table Contents Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L 2. [Para. 6-a-2] On April 1, 2020, the premium and accrued interest on bonds sold were received by the Street Improvement Bond Debt Service Fund. (See Transaction 3-a-3 in the Street Improvement Fund Required: Record this transactionin the Street Improvement Debt Service Fund. No entry is required at this time in the governmental activities generaljoumal since the bond issue, together with related premium and accruedinterest, was recorded in the govemmental a eraljoumal in transaction 3-a-3. 3. [Para. 6-a-3] The July 1, 2020 interest payment was made in the amount of $25,000. (Note: Since you credited Expense Interest on Long-Term Debt for $12,500 in 5-a-3 in the governmental activities generaljoumal you can record the full July 1, 2020, interest payment as a debit to Interest Expense, less amortization of the premium.) Required: Record this transactionin both the Street Improvement Debt Service Fund and the govemmental activities general joumals. For the entry in the govemmental activities journal, assume that the appropriate amount of amortization of the Premium on Deferred Serial Bonds Payable for the period the bonds have been outstanding (April 1 to July 1) is $439. (Note: Although premiums and discounts on bonds issued are not amortizedin a debt service fund, they should be amortized at the goverment-wide level since the accrual basis of accounting is used at that level.) 4. [Para. 6-a-4] Make the required joumal entry in the govemmental activities generaljoumal to accrue six months of interest payable on the 2.5% deferred serial bonds from the July 1 interest payment until the end of the fiscal year, December 31, 2020. Forthis entry, assume that the appropriate amount of amortization of the Premiumon Deferred Serial Bonds Payable is $875. (Recall that interest is not accrued for the period July 1 to December 31, 2020 in the debt service fund as no appropriation exists for this expenditure and the interest is not due this fiscal year.) 5. Verify the accuracy of joumal entries, including dates and paragraph numbers, and, if you have not already done so, post all entries to the general ledger of both the Street Improvement Bond Debt Service Fund and governmental activities by clicking on [Post entries]. Make the entries needed to close the budgetary and operating statement accounts at the end of fiscal year 2020. Budgetary and operating statement accounts should be closed to Budgetary Fund Balance and Fund Balance-Restricted, as appropriate. Be sure that for each account being closed that the check mark for [Closing Entry] is on and that "Closing Entry" appears in the [Add credit] field. (Note: Closing entries for governmental activities at the government-wide level will be made in Chapter 9 of this cumulative problem) @ 2019 by McGraw-Hill Education 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. Page: 11 of 24 |Words: 7,319 1 80% +Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View PDF Foxit Reader PDF Foxit PDF Add Text AB! may Insert Endnote Bij Manage Sources Insert Table of Figures Insert Index 24 Insert Table of Authorities Table of B! Update Table Insert Next Footnote Le Style: APA Fifth Footnote Show Notes Insert Citation - 1 Bibliography Insert By Update Table BY Update Index Contents Caption Cross-reference Mark Mark Update Table Entry Citation Table of Contents Footnotes Citations & Bibliography aptions Index Table of Authorities L 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, 2019, in preparation for placing the new accounting system in full operation effective January 1, 2020 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 Smithville software by clicking on the MHE CitiesSmithvilleBingham 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 drop down 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 Page: 4 of 24 Words: 7,319 X Howsmall tab and aliake the Add now antand button and then aliar on Celent 1 3 100% +Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View N S 3i Manage Sources Y1 Foxit Reader PDF Foxit PD Add Text WI PDE Ury Insert Endnote M R Y2 Insert Table of Figures V3 ! Update Table AB' Insert Index 24 Insert Table of Authorities Table of Insert Next Footnote LE Style: APA Fifth By Update Table BY Update Index Update Table Contents Footnote Show Notes nsert Citation - Bibliography Insert Caption Cross-reference Mark Mark Entry Citation Table of Contents Footnotes Citations & Bibliography aptions Index Table of Authorities L project from the "Recent projects" list. . 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. (Note: For purposes of this exercise, date suffixes are omitted from @2019 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or 4 distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, orposted on a website, in `whole or part. the Expenditures and Encumbrances accounts as expenditures occur only from a single year's appropriations.) You will not use all of the 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, 2019, 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 the desired account name from the dropdown list in the [Account] column. Be sure to enter 2019 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.) Page: 4 of 24 Words: 7,319 100%Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert References Mailings Review N Page Layout View Add Text S R Y1 Foxit Reader PDF Foxit PD M WI PDE Y2 V3 ! Update Table AB' Ury Insert Endnote 3i Manage Sources Insert Table of Figures Insert Index 24 Insert Table of Authorities Table of Insert Next Footnote nsert De Style: APA Fifth Insert By Update Table Mark Update Index Mark Update Table Contents Footnote Show Notes Citation - Bibliography Caption [ Cross-reference Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L 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, 2019 Account Title Debits Credits Cash $ 376.290 Taxes Receivable-Delinquent 391.756 Allowance for Uncollectible Delinquent Taxes $ 11,752 Interest and Penalties Receivable on Taxes 40.126 Allowance for Uncollectible Interest and Penalties 3.611 Due from State Government 165,000 Vouchers Payable 269.491 Due to Federal Government 135,720 Due to State Government 32.600 Deferred Inflows of Resources 97,704 Fund Balance-Committed-Public Works 29.700 Fund Balance-Assigned-Culture and Recreation 56.800 Fund Balance-Unassigned 335,794 Totals $ 973.172 $ 973.172 @2019 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This docu ent may not be copied, scanned, duplicated, forwarded, distributed, orposted on a website, in whole or part. 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 a selected journal line in any unposted batch of entries. Prior to unposting a batch all batches must be posted. Page: 5 of 24 |Words: 7,319 % 100%Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert References Mailings Review View N Page Layout S Foxit PD M R WI PDE Y1 Foxit Reader PDF Add Text Y2 V3 ! Update Table AB' Ury Insert Endnote 3i Manage Sources Insert Table of Figures Insert Index 24 Insert Table of Authorities Table of Insert Next Footnote De Style: APA Fifth B Update Table Update Index Update Table Contents Footnote Show Notes nsert Citation - Bibliography Insert Caption Cross-reference Mark Mark Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L entries. r rior to upposting a vaccu au vaicues 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 2019. 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. C. Select [Governmental Activities, Government-wide Level] in the "Current accounting entity" drop-down 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. d. 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 2019 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, government-wide general ledger CITY OF SMITHVILLE Governmental Activities Government-wide Level Post-closing Trial Balance As of December 31, 2019 Account Title Debits Credits Cash $ 376,290 Taxes Receivable-Delinquent 391,756 Allowance for Uncollectible Delinquent Taxes $ 11,752 Interest and Penalties Receivable on Taxes 40.126 Allowance for Uncollectible Interest and Penalties 3.611 Due from State G 165,000 Land 4,180,000 Infrastructure 9,862,000 Accumulated Depreciation-Infrastructure 2.713,944 Buildings 6,296,000 Page: 6 of 24 Words: 7,319 100% +Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View PDF Foxit Reader PDF Foxit PDF Add Text AB! may Insert Endnote Bij Manage Sources Insert Table of Figures Insert Index B! Update Table 24 Insert Table of Authorities Table of Insert Next Footnote Le Style: APA Fifth By Update Table Update Index Update Table Contents Footnote Show Notes Insert Citation - Bibliography Insert Caption Cross-reference Mark Mark Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L Accumulated Depreciation-Buildings 1,731,000 Equipment 3,556,800 Accumulated Depreciation-Equipment 1,765,480 Vouchers Payable 269.491 Due to Federal Government 135,720 Due to State Government 32.600 Net Position-Net Investment in Capital Assets 17,684,376 Net Position-Unrestricted 519.998 Totals $24.867.972 $24.867.972 Select [Reports>Trial Balances>Post-Closing Trial Balance] and print the post- closing trial balance for 2019, 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. Before closing the City of Smithville 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 Chromebook. Page: 7 of 24 |Words: 7,319 % 10 = 100% +Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View PDF Foxit Reader PDF Foxit PDF Add Text may Insert Endnote Bij Manage Sources Insert Table of Figures Insert Index 24 Insert Table of Authorities Table of B! Update Table AB! Insert Next Footnote Insert Le Style: APA Fifth Insert By Update Table Citation - Bibliography Caption [ Cross-reference Mark B Update Index Mark By Update Table Contents Footnote Show Notes Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L Chapter 3 Recording the Annual Budget The following budget for the General Fund of the City of Smithville was legally adopted for the fiscal year ending December 31, 2020. Estimated Revenues: Taxes-Real Property $1,841,126 Interest and Penalties on Taxes 37.000 Licenses and Permits 500,000 Fines and Forfeits 210.000 Intergovernmental Revenue 789,000 Charges for Services 624.720 Total Estimated Revenues $4.001.846 Appropriations: General Government $ 799,500 Public Safety 1,926,000 Public Works 724,000 Culture and Recreation 560,500 Total Appropriations $4.010.000 Required a. After opening the file you created for Chapter 2 of this project, record the budget in the general journal, providing entries in the Detail Journal when directed. Begin by selecting [General Fund] in the "Current Accounting Entity" dropdown menu and the [Journal] tab. In the [Year] field, be sure to select the year 2020. Enter 3-a in the [Add description] field. Select Estimated Revenues in the drop down [Account] window. Click [Add subsidiary] to go to the Detail Journal where you will enter the detail for each estimated revenue source. In the Detail Journal, select "Budget Authorization" from the drop-down menu for [Description]. When you have finished entering the estimated revenue detail information, verify that the correct balance is shown in the Detail Journal, then click on [Add entry and return to Journal] and the total estimated revenues will be entered in the general journal Estimated Revenues control account. Follow the same procedure to record the budget detail for Appropriations. Complete the general journal entry by debiting or crediting Budgetary Fund Balance as appropriate to make the journal entry balance. Note that budgetary entries have no effect on governmental activities at the government-wide level and thus the budget information is only recorded in the General Fund. When you are satisfied you have made the entry correctly. post it to the general Page: 8 of 24 |Words: 7,319 1 = 100% +Instructions_Smithville_ShortVersion_18e (Read-Only) - Microsoft Word X Home Insert Page Layout References Mailings Review View Foxit PD N Add Text S R WI Y1 Foxit Reader PDF M PDE Y2 AB' Ury Insert Endnote 3i Manage Sources Insert Table of Figures V3 Insert Index 24 Insert Table of Authorities Table of ! Update Table Insert Next Footnote nsert Le Style: APA Fifth Insert By Update Table Mark Update Index Mark Update Table Contents Footnote Show Notes Citation - 1 Bibliography Caption Cross-reference Entry Citation Table of Contents Footnotes Citations & Bibliography Captions Index Table of Authorities L When you are satisfied you have made the entry correctly, post it to the general ledger by clicking [Post entries]. Before posting, or after unposting as described previously, you can edit, delete or insert entries in the journal by placing the cursor in the line you want to adjust and then right-clicking. Note that the "Insert Entry" @2019 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or 8 distribution in anymanner. This document may not be copied, scanned, duplicated, forwarded, distributed, orposted on a website, in whole or part. function will work if you are inserting an entry prior to a balance sheet account. However, it will not work when inserting an entry prior to any account that has an associated subsidiary ledger (e.g., estimated revenues, expenditures) b. Go to [Reports]: print the pre-closing subsidiary ledgers and pre-closing General Fund trial balance for year 2020 and retain them in your cumulative file until directed by your instructor to submit them, or save and submit these documents electronically if directed to do so by your instructor. (As of this time, only the budget has been recorded.) This is your last opportunity to print or export these documents with budgetary information only. After operating transactions have been journalized and posted in Chapter 4, subsidiary ledgers and trial balances will contain both budgetary and operating accounts and balances. Before closing the City of Smithville 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 Chromebook. Page: 8 of 24 |Words: 7,319 1 = 100% +