Prepare A Silver City, a local government organization, was organized January 1, 2015. The City Council for Silver City adopted (among others) the following accounting procedures:The City's fiscal year will be the same as the calendar year.

All transactions of more than $100 with outside (non-City) entities are to be processed through the voucher system.

All transactions of $1,000 or more with non-City entities, which will not be settled within 45 days, are to be encumbered.

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

Budgets will be entered only into the General Fund's records. Premiums received from the sale of general obligation bonds will be moved to the

Debt Service Fund. The General Fixed Assets Account Group will not calculate depreciation.Overages and/or underages of closed governmental funds (e.g. Capital Projects, Special Revenue) will be transferred 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 #2- Police Department (CP#2) Debt Service Fund (DS) Enterprise Fund #4 - Municipal Marina (EN#6) General Fixed Asset Account Group (GFAAG) General Fund (GF)

General Long-term Debt Account Group (GLTDAG) Internal Service Fund #1 - Transportation Service Bureau (IS#1) Special Revenue Fund #3 - State Parks Beautification Grant (SR#3)

Required: Prepare ALL of Silver City's general ledger control account journal entries in professional form, using the format below, for the independent events shown on each of the following dates (only). Some events require more than one journal entry in a fund and/or an account group, or entries in two or more funds or account groups, on the date given; accordingly, each journal entry proposed should be linked to the fund and/or account group it would be recorded for the related independent event with the format as follows:

Fund or DateAcct GroupAccount Description Debit Credit

2/1/11 GF Expenditures 90 Cash 90

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. Use the account titles which are used in the Lecture Notes. Do not abbreviate account description titles. Fund and/or Account group references may be abbreviated as outlined above

(e.g. GF = General Fund, IS#1 = Internal Service Fund (for Transportation Service Bureau, etc.). Use accounting-type, ledger paper, or prepare in computer-generated format (e.g. Excel).

Silver City's events to be journalized for the 2021 fiscal year are listed below:

1/3/21 City established a new fund, Internal Service Fund #1 - Transportation Services Bureau (IS#1), to handle all City motor pool services. GF sent check for $150,000 to IS#1 to start the new fund. (2)

1/7/21 The construction of a new police station was financed with a $600,000 par value, 5% general obligation bond, which was sold at 102 by the brokerage firm of Goldman Sachs. The bond is due serially each 12/31 for ten years beginning 12/31/21. The City received a check for the full issuance amount. This construction project will be handled in the Capital Projects Fund #2 - Police Department (CP#2). CP#2 notified the 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)

1/17/21 CP#2 delivered $12,000 check to DS for premium on bonds sold 1/7/21. (2)

1/25/21 CP#2 received a donation of a parcel of land running adjacent to the site of the new police department. The fair market value of the land was $50,000 on 1/25/21, the date of the donation. The donor had purchased the land 5 years earlier for $32,000. (1)

1/30/21 CP#2 approved a bill in the amount of $85 from the local newspaper in connection with an ad the City placed to solicit bids for the police department construction project. City mailed a check the same day. (1)

2/4/21 CP#2 signed a $230,000 contract with Bulkoki Contractors, Ltd. to construct the new police department. The contract provided that 50% of the contract price could be billed (to the City) when the building was fully enclosed, and the remaining 50% billed when the building construction completed. Ten percent of the final billing could be withheld pending inspection and acceptance of the work by the City building inspector. (1)

2/20/21 CP#2 leased specialized construction equipment in connection with its new police department project under a non-cancelable financing lease. The present value of the lease payments on 2/20/21 = $21,000. (3)

2/27/21 IS#1 purchased and took possession a fleet of vans from a local automobile dealer. The invoice was for $100,000 with payment due within 30 days of the date of purchase/possession. (1)

3/3/21 CP#2 received and approved an invoice of $1,200 for engineering fees. Check was

mailed the same day. (2)

3/20/21 DS paid $2,100 principal and $110 interest on the financing lease CP#2 entered into on 2/20/21. (3)

4/5/21 City received a grant for $27,000 from the State to aid in beautifying the city parks. City will bill the State for reimbursement of expenditures made pursuant to the grant. City created Special Revenue Fund #3 - State Parks Beautification Grant (SR#3) to handle this project. (1)

4/23/21 SR#3 received and approved an invoice from Campanella Botanical Corporation for $7,000 and mailed a check in payment of that amount. SR#3 notified the State that it had expended $7,000 pursuant to the State Parks Beautification grant. (3)

5/5/21 GF received, approved, and paid an insurance bill for $1,200, $350 of which is an obligation of CP#2. GF sent a bill to CP#2 for CP's $350 cost share. (3)

6/4/21 CP#2 received and approved Bulkoki Contractor's first (partial) billing for $115,000, in payment of 50% of the contract price agreed to and signed on 2/4/21. (2)

6/5/21 GF received $350 check from CP#2 in payment of bill sent to CP on 5/5/21 for its insurance cost share. (2)

6/14/21 CP#2 vouchered, and then issued a check, for $115,000 to Bulkoki Contractors for the partial billing approved on 6/4/21. (2)

6/23/21 SR#3 received $27,000 reimbursement check from the State for Parks Beautification grant (see 4/5/21). (1)

6/30/21 IS#1 recorded quarterly depreciation of $5,000 on its fleet on vans. (1)

6/30/21 GFAAG made its first entry of construction completed to date in CP#2. The amount recorded was $200,000. (1)

7/11/21 When the voters approved the bond issue to build the new police department, 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

$50,000, which it had collected in property taxes, to DS to be used to repay the debt. (3) 8/30/21 IS#1 (approved for payment) interest of $560 it owed on a short-term loan from the

Harriman Community Bank. (1)

9/15/21 CP#2 received an invoice dated the same day for $2,500 from IS#1 for transportation-related services IS#1 had provided for CP#2. CP#2 approved the invoice for payment. (2)

9/30/21 GF borrowed $24,000 at 5% from EN#4 on a short-term basis, and received a check for that amount. (2)

9/30/21 CP#2 delivered a check for $2,500 to IS#1 in payment of the 9/15/21 invoice. (2)

10/4/21 CP#2 received and approved the second and final billing from the contractor for

$115,000. The contractor had completed the police department for $5,000 less than the contract price. CP#2 planned to withhold the full amount allowed in the contract pending inspection of the completed building. (2)

10/10/21 CP#2 vouchered, and then issued, a check for amount approved on 10/4/21 to the contractor. The building inspection had not been completed. (2)

10/30/21 The building inspection was completed and the inspector deemed the work to be satisfactory and acceptable. CP#2 vouchered, and then paid the contractor, the total amount which had been withheld on 10/4/21. (2)

11/7/21 DS transferred $87,000 cash to Harriman Community 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)

11/30/21 GF repaid the 9/30/21 loan from EN#4 with interest. (2)

12/15/21 Its work completed, CP#2 sent a check for $7,300 to the GF to close the operations of CP#2. The new police department had cost $592,700, of which $200,000 had been recorded previously as "Construction in progress" in the GFAAG. (3)

12/17/21 GF received $1,233 for computer equipment, which it sold. The equipment had been purchased in 2018 for $7,700. (2)

12/21/21 DS approved payment of $27,000 interest, and payment of $60,000 bond principal, to bondholders on 12/31/21. DS directed the fiscal agent (Harriman Community Bank) to prepare checks and mail them on 12/30/21 for delivery 12/31/21. (1)

12/20/21 DS made the final payment of $2,100 principal and $110 interest on CP#2's financing lease. The leased equipment was returned to the Lessor. (4)

12/23/21 EN#4 approved and mailed a check for $9,200 to the GF in lieu of property taxes. The GF has not yet received the check. (1)

12/31/21 DS received written notification from Harriman Community Bank that it had mailed checks on 12/30/21, for delivery on 12/31/21 to bondholders, for interest and principal, which had been authorized on 12/21/21. (2)