Silver City was organized January 1, 2005: The City council adopted(among other) the following accounting procedures:

* The city's fiscal year will be the same as the calender year.

*Budgets will be entered into only the General Fund's records.

*Transactions for more than $100 with non-City entities will be processed through the voucher system.

*Transactions of $1000 or more with non-city entities, which will not be settled within 30 days,will be encumbered.

*City will take maximum advantage of discounts offered; otherwise, the city will pay its bills on the dates due(unless otherwide specified)

*Premiums received for sale of general obligation bonds will be moved to the Debt Service Fund.

*The General Fixed Assets Account Group will not calculate depreciation.

*Close Capital Projects Funds' overages/under ages to the General Fund.

The City Council approved the following funds(among others) and account groups, to be used in the City's accounting system:

Capital projects fund #3- Fire Station (CP #3)

Debt Service Fund (DS)

Enterprise Fund #6 - Municipa Parking Garage (EN#6)

General Fixed Asset Account Group (GFA)

General Fund (GF)

General Long-term Debt Account Group (GLTD)

Internal Service Fund #1 - Computer service Bureau (IS#1)

Special Revenue Fund #4 - XYZ Foundation Grant (SR#4)

Required: Prepare all of Silver City's general ledger control account journal entries, using the format below, for the independent events shown on each of the following dates (only).

Some events require more than on journal entry in a fund or an account group, or entries in two or more funds or account groups, on the date given. Explanation of each journal entry is optional, but recommended - especially for entries which are not common, or with which you have trouble. Numbers in brackets indicate the number of journal entries required for that transaction.

1/2/11

City established a new fund Internal Service Fund #1 - Computer Service Bureau (IS#1), to handle all City computer - related work. GF sent check for $50,000 to IS#1 to start the new fund. (2)

1/5/11

To financial the building of a new fire station,City sold $100,000 par value, 8.0% general obligation bonds, due serially each 12/13 for twenty years beginning 12/31/11, to Merrill Lynch (brokerage firm) at 102, and received a check for the full amount. Project will be handled in Capital Projects Fund #3 - Fire Station (CP#3). CP#3 notified DS that a premium had been received on the sale of the bonds, and stated that a check for the premium will be delivered in 10 days. DS recorded the notification in its accounting records.(3)

1/15/11

CP#3 delivered $2,000 check (premium on sale of bonds) to DS. (2)

1/20/11

CP#3 approved an advertising bill (for soliciting bids on the project) from the newspaper for $75, and mailed a check. (1)

1/31/11

CP#3 received a parcel of donated land adjacent to the site of the new fire station. Fair market value of the land on 1/31/11 was $22,000. The donor had bought the parcel 2 years earlier for $20,000. (1)

2/1/11

CP#3 accepted the lowest bid of $106,000 from ABC Contractors, Inc., and signed a contract. Contract provided that 40% could be billed when the building was fully enclosed, an the remaining 60% when the building was finished. Ten per cent of the final billing could be withhed pending inspection and acceptance of the work by the City building inspector. (1)

2/15/11

IS# 1 purchased computer equipment from a local supplier. The equipment was delivered and installed the same day. The invoice was for $14,500 with payment due within 30 days of delivery. (1)

2/25/11

CP# 3 leased specialized construction equipment from a local supplier. The equipment was delivered and installed the same day. The invoice was for $14,500 with payment due within 30 days of delivery. (1)

2/25/11

CP #3 leased specialized construction equipment in connection with its new fire station project under a non-cancelable lease. The present value of the minimum lease payment = fair market value of the equipment on 2/25/11 = $9,000.(3)

3/1/11

CP #3 received and approved an invoice of $1,300 for engineering fees. Check was mailed the same day. (2)