Silver City was orgapized January 1, 2005: The City Council adopted (among others) the following accounting procedures: The City's fiscal year will be the same as the calendar year. Budgets will be entered into only the General Fund's records. Transactions of more than $100 with non-City entities will be processed through the voucher system. Transactions of $1,000 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 otherwise specified). Premiums received from 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/underages 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 - Municipal 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). Use the account titles which are used in the Lecture Notes. Do not abbreviate account titles, except for Funds names, e.g., "GF" may be used instead of "General Fund. Use accounting type, ledger paper, or prepare in computer generated format (e.g. Excel). Fund or Date Arct Gep Account Description Debit Credit 2/1/11 GF Expenditures Cash 90 90 MacBool Some events require more than on journal entry in a fund or an account group, or entries in two or more funds 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 1/5/11 1/15/11 1/20/11 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) To finance the building of a new fire station, City sold $100,000 par value, 8.0% general obligation bonds, due serially each 12/31 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) CP#3 delivered $2,000 check (premium on sale of bonds) to DS. (2) CP#3 approved an advertising bill (for soliciting bids on the project) from the newspaper for $75, and mailed a check. (1) 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) 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, and the remaining 60% when the building was finished. Ten per cent of the final billing could be withheld pending inspection and acceptance of the work by the City building inspector. (1) 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) CP#3 leased specialized construction equipment in connection with its new fire station project under a non-cancelable financing lease. The present value of the lease payments on 2/25/11 - $9,000, (3) 1/31/11 2/1/11 2/15/11 2/25/11 3/1/11 CP#3 received and approved an invoice of $1,200 for engineering fees. Check was mailed the same day (2) 3/25/11 4/1/11 4/20/11 5/1/11 5/15/11 6/1/11 DS paid $900 principal plus $50 Interest on CP#3's financing lease. (3). City received a grant for $12,000 from the XYZ Foundation to provide eyeglasses for nursery school children whose families meet certain criteria. City will bill the Foundation for reimbursement of expenditures made pursuant to the grant. City created Special Revenue Fund #4 - XYZ Foundation (SR#4) to handle this program. (1) SR#4 received and approved an invoice from Optical Services, Inc. for $900 and mailed a check. SR #4 notified XYZ Foundation that it had expended $900 pursuant to XYZ Foundation's grant. (3) GF received, approved, and paid an attorney's bill for $700, $200 of which is an obligation to CP#3. GF sent a bill to CP#3 for $200 (3) GF received $200 check from CP#3 (bill of 5/1/11), (2) CP#3 received and approved the contractor's first (partial) billing for $42,400, 40% of the contract price as agreed. (2) CP#3 vouchered, and then issued a check, for $42,400 to the contractor. (2) SR#4 received $900 reimbursement check from XYZ Foundation (see 4/20/11), (1) IS#1 recorded quarterly depreciation of $250 on its equipment (1) GFAAG (GFA) made its first entry of construction completed to date in CP#3. The amount recorded was $28,000. (1) When the voters approved the bond issue to build the fire station, they designated a percentage of the increased) annual City property tax receipts to be used to repay the debt. Accordingly, GF delivered an appropriate check for $10,000, which it had collected in property taxes, to DS to be used to repay the debt. (3) IS#1 (approved for payment) interest of $475 it owed the First National Bank on a short-term loan. (1) GF arranged to borrow $10,000 at 6% on a short-term basis from EN#6, and received a check for that amount. (2) 6/10/11 6/15/11 6/30/11 6/30/11 7/1/11 8/15/11 9/1/11 Take a 9/10/11 9/25/11 10/1/11 10/5/11 10/20/11 11/1/11 CP#3 received an Involce dated the same day for $1,400 from 1S#1 for computer services IS#1 had provided for CP#3. CP#3 approved the invoice for payment. (2) CP#3 delivered a check for $1,400 to IS#1 to settle 9/10/11 involce. (2) CP#3 received and approved the second and final billing from the contractor for $60,000. The contractor had completed the fire station for $3,600 less than the contract price. CP#3 planned to withhold the full amount allowed in the contract pending inspection of the completed building. (2) CP#3 vouchered, and then issued, a check for amount approved on 10/1/11 to the contractor. The building inspection had not been completed. (2) The building Inspection was completed and everything was satisfactory. CP#3 vouchered, and then paid the contractor, the total amount which had been withheld on 10/1/11. (2) DS transferred $13,000 cash to First National Bank, which acts as Silver City's fiscal agent for payment of Interest and repayment of principal on the City's general obligation bonds. (1) GF repaid the 9/1/11 loan from EN #6 with interest. (2) DS made the final payment of $900 principal plus $50 interest on CP#3's financing lease. The leased equipment was returned to the Lessor. (4) GF received $800 for office equipment, which it sold. The office equipment had been purchased in 2006 for $6,000. (2) DS approved payment of $4,000 interest, and payment of $5,000 bond principal, to bondholders on 12/31. DS directed the fiscal agent (First National Bank) to prepare checks and mail them on 12/30 for delivery 12/31. (1) Its work completed, CP#3 sent a check for $1,000 to the GF to close the operations of CP#3. The fire station had cost $109,000, of which 579,000 had been recorded previously as "Construction in progress" in the GFAAG (GFA). (3) EN#6 approved and mailed a check for $7,500 to the GF in lieu of property taxes. The GF has not yet received the check. (1) DS received written notification from First National Bank that it had malled checks on 12/30 for delivery 12/31 to bondholders for interest and principal, which had been authorized on 12/10 (2) 11/15/11 11/25/11 12/1/11 12/10/11 12/15/11 12/23/11 12/31/11 Silver City was orgapized January 1, 2005: The City Council adopted (among others) the following accounting procedures: The City's fiscal year will be the same as the calendar year. Budgets will be entered into only the General Fund's records. Transactions of more than $100 with non-City entities will be processed through the voucher system. Transactions of $1,000 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 otherwise specified). Premiums received from 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/underages 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 - Municipal 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). Use the account titles which are used in the Lecture Notes. Do not abbreviate account titles, except for Funds names, e.g., "GF" may be used instead of "General Fund. Use accounting type, ledger paper, or prepare in computer generated format (e.g. Excel). Fund or Date Arct Gep Account Description Debit Credit 2/1/11 GF Expenditures Cash 90 90 MacBool Some events require more than on journal entry in a fund or an account group, or entries in two or more funds 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 1/5/11 1/15/11 1/20/11 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) To finance the building of a new fire station, City sold $100,000 par value, 8.0% general obligation bonds, due serially each 12/31 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) CP#3 delivered $2,000 check (premium on sale of bonds) to DS. (2) CP#3 approved an advertising bill (for soliciting bids on the project) from the newspaper for $75, and mailed a check. (1) 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) 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, and the remaining 60% when the building was finished. Ten per cent of the final billing could be withheld pending inspection and acceptance of the work by the City building inspector. (1) 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) CP#3 leased specialized construction equipment in connection with its new fire station project under a non-cancelable financing lease. The present value of the lease payments on 2/25/11 - $9,000, (3) 1/31/11 2/1/11 2/15/11 2/25/11 3/1/11 CP#3 received and approved an invoice of $1,200 for engineering fees. Check was mailed the same day (2) 3/25/11 4/1/11 4/20/11 5/1/11 5/15/11 6/1/11 DS paid $900 principal plus $50 Interest on CP#3's financing lease. (3). City received a grant for $12,000 from the XYZ Foundation to provide eyeglasses for nursery school children whose families meet certain criteria. City will bill the Foundation for reimbursement of expenditures made pursuant to the grant. City created Special Revenue Fund #4 - XYZ Foundation (SR#4) to handle this program. (1) SR#4 received and approved an invoice from Optical Services, Inc. for $900 and mailed a check. SR #4 notified XYZ Foundation that it had expended $900 pursuant to XYZ Foundation's grant. (3) GF received, approved, and paid an attorney's bill for $700, $200 of which is an obligation to CP#3. GF sent a bill to CP#3 for $200 (3) GF received $200 check from CP#3 (bill of 5/1/11), (2) CP#3 received and approved the contractor's first (partial) billing for $42,400, 40% of the contract price as agreed. (2) CP#3 vouchered, and then issued a check, for $42,400 to the contractor. (2) SR#4 received $900 reimbursement check from XYZ Foundation (see 4/20/11), (1) IS#1 recorded quarterly depreciation of $250 on its equipment (1) GFAAG (GFA) made its first entry of construction completed to date in CP#3. The amount recorded was $28,000. (1) When the voters approved the bond issue to build the fire station, they designated a percentage of the increased) annual City property tax receipts to be used to repay the debt. Accordingly, GF delivered an appropriate check for $10,000, which it had collected in property taxes, to DS to be used to repay the debt. (3) IS#1 (approved for payment) interest of $475 it owed the First National Bank on a short-term loan. (1) GF arranged to borrow $10,000 at 6% on a short-term basis from EN#6, and received a check for that amount. (2) 6/10/11 6/15/11 6/30/11 6/30/11 7/1/11 8/15/11 9/1/11 Take a 9/10/11 9/25/11 10/1/11 10/5/11 10/20/11 11/1/11 CP#3 received an Involce dated the same day for $1,400 from 1S#1 for computer services IS#1 had provided for CP#3. CP#3 approved the invoice for payment. (2) CP#3 delivered a check for $1,400 to IS#1 to settle 9/10/11 involce. (2) CP#3 received and approved the second and final billing from the contractor for $60,000. The contractor had completed the fire station for $3,600 less than the contract price. CP#3 planned to withhold the full amount allowed in the contract pending inspection of the completed building. (2) CP#3 vouchered, and then issued, a check for amount approved on 10/1/11 to the contractor. The building inspection had not been completed. (2) The building Inspection was completed and everything was satisfactory. CP#3 vouchered, and then paid the contractor, the total amount which had been withheld on 10/1/11. (2) DS transferred $13,000 cash to First National Bank, which acts as Silver City's fiscal agent for payment of Interest and repayment of principal on the City's general obligation bonds. (1) GF repaid the 9/1/11 loan from EN #6 with interest. (2) DS made the final payment of $900 principal plus $50 interest on CP#3's financing lease. The leased equipment was returned to the Lessor. (4) GF received $800 for office equipment, which it sold. The office equipment had been purchased in 2006 for $6,000. (2) DS approved payment of $4,000 interest, and payment of $5,000 bond principal, to bondholders on 12/31. DS directed the fiscal agent (First National Bank) to prepare checks and mail them on 12/30 for delivery 12/31. (1) Its work completed, CP#3 sent a check for $1,000 to the GF to close the operations of CP#3. The fire station had cost $109,000, of which 579,000 had been recorded previously as "Construction in progress" in the GFAAG (GFA). (3) EN#6 approved and mailed a check for $7,500 to the GF in lieu of property taxes. The GF has not yet received the check. (1) DS received written notification from First National Bank that it had malled checks on 12/30 for delivery 12/31 to bondholders for interest and principal, which had been authorized on 12/10 (2) 11/15/11 11/25/11 12/1/11 12/10/11 12/15/11 12/23/11 12/31/11