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Bingham Instructions.doc

Instructions
City of Bingham
Computerized Cumulative Problem

For use with McGraw-Hill/Irwin

Accounting for Governmental & Nonprofit Entities
16th Edition

By Jacqueline L. Reck, Suzanne L. Lowensohn, and Earl R. Wilson

1

Table of Contents
Chapter 1 Introduction and Use of the City of
Smithville/City of Bingham Software ..

3

Project Instructions and Information ..

13

Chapter 2 Opening the Books ...

14

Chapter 3 Recording the Annual Budget .

19

Chapter 4 Recording Operating Transactions
the General Fund and Governmental Activities
at the Government-wide Level .

21

Chapter 5 Recording Capital Assets and
Capital Projects Transactions . 27
Chapter 6 Transactions Affecting General
Long-term Liabilities and Debt Service 30
Chapter 7 Recording Transactions Affecting
the Enterprise Fund and Business-type
Activities 34
Chapter 8 Recording Transactions Affecting a
Fiduciary Fundan Investment Trust Fund

38

Chapter 9 Adjusting and Closing Entries for
Governmental Activities, Government-wide
Level; Preparation of Government-wide and
Major Fund Financial Statements . 41
Chapter 10 Analysis of Financial Condition . 43
Chapter 11 Preparation of Audit Report 43
Appendix A 44

2

CHAPTER 1
INTRODUCTION AND USE OF THE CITY OF SMITHVILLE/CITY
OF BINGHAM SOFTWARE
Welcome
Thank you for purchasing the City of Smithville/City of Bingham Governmental
Accounting Software. This software is designed to be used with the McGrawHill/Irwin textbook Accounting for Governmental and Nonprofit Entities, 16th
Edition.

System Requirements
To use the City of Smithville/City of Bingham accounting software application,
you must have the following:
Operating System:
Microsoft® Windows 2000 or later
Mac OS X v10.4 or 10.5
Linux Red Hat® Enterprise Linux (RHEL) 5
Hardware:
Windows ®: Intel® Pentium® II 450MHz or faster processor (or
equivalent)
Macintosh: PowerPC® G3 500MHz or faster processor;
Intel Core Duo 1.33GHz or faster processor
Recommended screen resolution of 1024 x 768 minimum
128MB of RAM minimum
Spreadsheet program (in order to easily view the exported CSV files)
Excel 2003 or later (in order to view the exported Excel files)
Internet Explorer 7 or later, Mozilla Firefox 3.x or later, Safari 3.x or later
Adobe Flash Player version 10.1 or above
Adobe Reader 9 or later to read saved report files
Special instruction for MAC and Linux users:
Users have to manually open the program.html file that resides in the
Smithville_Bingham folder because start instructor is an .exe file and will run
only in Windows environment.

Licensing
This manual was written for use with the City of Bingham application. The
manual and the software described in it are copyrighted, with all rights reserved.
This manual and the City of Smithville/City of Bingham software may not be
3

copied, except as otherwise provided in your software license or as expressly
permitted in writing by McGraw-Hill Higher Education, Inc.
Use of the City of Smithville/City of Bingham governmental accounting software
(the Software) and its documentation are governed by the terms set forth in
your license. Such use is at your sole risk. The software and its documentation
(including this manual) are provided AS-IS and without warranty of any kind.

[Note: Read the following instructions on pages 4-11 before beginning
your first assignment. Refer back to this information as needed.]
RUNNING OR REMOVING THE CITY OF BINGHAM
Running the City of Bingham
The City of Bingham can be started by clicking on the Smithville_Bingham
folder as indicated in the Opening the City of Bingham instructions below. As
the City of Bingham is a web-based application, it need not be installed onto your
local computer. However, the software is downloaded as a .zip file, copied to your
computer or a removable medium (i.e., CD/DVD, USB flash drive, etc.),
unzipped, and run locally on your Web browser.
As computers are often configured differently, you may need to change your
Adobe Flash Player Security settings in order to run the City of Bingham. For
more information and detailed instructions, please see Appendix A.
You may exit the program by clicking the "X" button at the top right corner of the
browser. However, before closing the browser window you MUST SAVE your
work or else all changes will be lost.

Removing the City of Bingham
You can remove the City of Bingham by deleting the Smithville_Bingham
folder. It is unnecessary to uninstall the software.

GENERAL OPERATING INSTRUCTIONS
Opening the City of Bingham
You can open the City of Bingham at any time by clicking on the
Smithville_Bingham folder and then clicking on either the Program or Start
icon. The application requires the Web Browser pop-up blocker be turned off in
order to run the application properly.

4

Creating a New Project
If you will need the instructions for the Bingham project before creating a new
project, click on the appropriate file on the Launch window or on Open
Instructions in the opening window. Open or print the project instructions file.
To create a new project, click on Create New Project. The Create New Project
window will appear, as shown below.

Enter your first and last name, then select City of Bingham as your project and
click [Create]. The main project window will pop-up once the project is created
and you will be ready to begin entering journal entry data for your first
assignment. This step creates the accounts and funds that you will need to
complete the City of Bingham project. After you have completed the journal
entries for each assignment, you should save your project data file in the Projects
folder located in the Smithville_Bingham folder that was created when the
download file was unzipped. For your own protection against hard-drive failure
or file corruption, we recommend that you create a dated backup file on a
removable device (CD/DVD/USB Flash Drive) or a server at the end of each
session. This will permit you to reopen your project to the current stage of
completion should you make serious errors on the next session.

Opening an Existing Project
After your initial data entry session, click on Open Existing Project, and then
select and open the data file you saved at the end of your first session.

Saving the Current Project
During, or at the end of each assignment, click on <File> and <Save/Save As>.
If a filename has already been specified, the current filename should be displayed
in the Save dialog but may be changed if desired. Be sure NOT to exit your

5

browser until you have saved your project file or all changes made during
the current session will be lost.

6

City Of Bingham Main Window
If you have opened a project file, the main project window should appear as
follows:

To navigate between the Journal, Account, and Ledgers screens, simply click on
the [TAB] for that particular screen.
To switch between different funds and governmental activities, government-wide,
choose the desired entity from the drop-down menu.
You can verify which entity you are working on by the caption on the upper right
corner of the window. It will show the title of your project, and the current fund
you are in.
The main window has the same standard window controls as most other
applications. To close down your project, simply click on the [X] box. It is very
important, however, that you save your project file before closing the
browser. Remember the folder location where you save your file so it will be
easier to retrieve it when you want to reopen the file.

7

Adding and Posting Journal Entries
If you are looking at the main window, you need to switch to the Journal view
before you can add any journal entries.
Once you have switched to the Journal view, you will see the journal entry panel
on the lower portion of the window.

Before ANY entry can be added to the journal, a transaction description, account
#-description, and debit or credit must be specified.
Once you have filled in the necessary fields, simply click on [ Add Entry] to add
the entry to the journal. If the entry being made is a closing entry, you must click
on the check mark for [Closing Entry].
If one of the fields is missing a value or contains an illegal character, the [Add
Entry] button will remain disabled.
If you are adding an entry that also affects a detail journal, you must first select an
item from the drop-down [Transaction Description] or type your own
description in the box before selecting the account and select the corresponding
control account from the drop-down [Account (# - Account Description)] menu.
If the account selected is a control account, the detail journal will automatically
open for entering the transaction detail.
Once you have entered a batch of entries into the general journal, you can post
them to the general ledger at any time by clicking the [Post Entries] button. In
the case of the General Fund, posting transactions also posts entries from the
detail journal to the Revenue ledger and Appropriations, Encumbrances,
Expenditures ledgers. The [Post Entries] button only posts entries for the
fund/entity that is currently open.

8

Editing/Deleting/Unposting Journal Entries
To edit entries that have already been entered, double click or right click on the
entry, and select edit. You will know you are in edit mode when the entry form
turns red and the boxes fill in with the data from the journal. If you wish to delete
an entry, right click on the item and select [Delete] or choose [Edit]-[Delete].
As in real-world systems, the software usually does not allow you to edit entries
that have already been posted. So, it is recommended that you verify the accuracy
of entries before clicking [Post Entries]. However, for your convenience we
have added the capability to unpost individual batches of posted transactions.
Simply highlight any entry within the batch you want to unpost and either right
click and select [Unpost] or select [Unpost] from the Edit menu. Make all
necessary editing changes to the appropriate accounts then click [Post Entries]
and your corrections will be made to the appropriate accounts. If you need to add
an entry to a previously posted journal entry, then unpost as described above,
highlight the line below which a new entry is to be added, and right click and
select Insert New Entry.

Screen shot of right clicking on a journal entry.

Enter the data for the new entry and click Add Entry to insert the new entry. As
in prior versions, a provision also allows you to clear all of the transactions from
the current fund or entity. Under [File]-[Student Assistance] you will find the
option [Wipe out Current Fund or Entity]. The wipe out function should be
used as a last resort since making changes by editing is quite easy. Once you
select this option, there is no going back. It will remove ALL of the transactions
for the current fund or entity.

9

Working with the Ledger Screen
Switch to the Ledgers screen by clicking on the Ledger tab.

Switch entities at any time by changing the selection. Depending on the fund or
entity on which you are working, there may be different ledgers for you to view.
Choose the ledger you want to view from the drop-down list.
If you want to print out a ledger, you should open the [Reports] menu, and select
the report to print.

Working with the Detail Journal Screen
The General Fund of the City of Bingham uses a Detail Journal to avoid recording
operating or budget detail in the general journal/ledgers.
If you choose a control account that has subsidiary detail associated with it, you
will be taken directly to the Detail Journal. If you attempt to edit a journal entry
that has associated subsidiary detail, you will automatically be prompted to also
open the Detail Journal for editing, if desired.
The Detail Journal screen for the General Fund appears as shown on the following
page.

10

The Detail Journal operates very similar to the entry screen on the General
Journal. Fill in the boxes or, in the case of the [Transaction Description] box,
select a description from the drop-down menu, and click [Add Entry]. The
balance of the entries for this transaction is automatically updated. When you exit
the Detail Journal the balance will be copied into a single control account amount
in the General Journal. Please note that the year and reference numbers of these
transactions are based on the originating entry (the line in the General Journal).

Printing Reports
All of the reports for the City of Bingham are available through the Reports menu.
Simply go to the menu and click on the report you want. To print, click on the
Print icon and print in the normal manner. If you need to create a Save as
Printable PDF File, accept the default file name and save location, or change the
name and/or location if you prefer.

11

Exporting Trial Balances
To make it easier to prepare financial statements/schedules, spreadsheet files for
all trial balances for each entity and each year of transactions, as well as detail
subsidiary account balances (General Fund only), can be exported to either Excel
or CVS for non-Microsoft applications. To export an item, select it from the
<File> <Export> menu, accept the default file name and folder location, and
save it. You can change the file name and/or location if you prefer.

12

Instructions and Information for Completing Chapters 2
through 10 and 11 of the City of Bingham
This version of a cumulative problem written for the computer presents a series of
transactions, covering activities of the City of Bingham, assuming the city utilizes the
dual-track accounting approach to the GASB governmental reporting model described in
Reck, Lowensohn, and Wilson, Accounting for Governmental and Nonprofit Entities, 16th
Edition. The transactions presented relate to the citys General, capital projects, debt
service, enterprise, and fiduciary funds, as well as to 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 Wilson, Accounting for Governmental and Nonprofit Entities, 16th
Edition.
If you have not yet read the Chapter 1 instructions for using the City of Bingham
software program, you should do so before beginning the project. When finished reading
those instructions, 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. 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 instructors preference and
instructions. Some instructors may prefer that you attach your project data file and a
spreadsheet file containing your trial balances, financial statements, and other required
documents to an e-mail for submission.
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 Bingham chapter as the corresponding chapter of the textbook is
covered. Conversely, students who procrastinate often find that the project takes much
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 the deadline for 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.

13

Chapter 2 Opening the Books
The City of Bingham has installed a new computerized accounting system, which
provides files for general journal entries and posting to appropriate general
ledger/subsidiary ledger accounts. Accounts are provided for both budgetary and
operating statement accounts and balance sheet accounts for the General Fund, as well as
accounts needed for governmental activities at the government-wide level. Accounts are
also provided as appropriate for all other funds used by the City of Bingham, which you
will use in Chapters 5-9 of the problem. To begin this case, you must enter the citys
initial accounting information as of December 31, 2013, so that all transactions can be
recorded for the next fiscal year beginning January 1, 2014.
Required
Open the City of Smithville/City of Bingham software by double clicking on the
Smithville_Bingham folder and then clicking on either the Program or Start icon.
When the Launch Application Page appears, select Launch Application. If creating a
new project, click [Create New Project], when the [Create New Project] window
appears choose City of Bingham from the [Choose a City] drop down menu. In addition,
in the [Enter your name] box please type in your first and last name so that your name
will appear on all printable reports and click [Create]. This will create the project and
provide access to all of the funds and accounts that you will need to complete the City of
Bingham cumulative problem.
To protect yourself from possible hard drive failure or corruption of your project data
file, we recommended that you save your file to a removable device (e.g., flash drive), or
location other than your hard drive, creating a dated backup file for your project at the
end of each session.
To open an existing project, click on [Open Existing Project] in the opening window.
a.

If it is not already displayed, select [General Fund] in the [Current Accounting
Entity] window and the [Accounts] tab. Verify that the following accounts are
listed. (Note: In addition to the accounts listed below you will see detail accounts
that will be used in subsequent chapters for achieving budgetary control and
recording revenues and expenditures detail.) Select the [Journal] tab and click the
drop down menu for [Account (#-Description)]. You should see all of the
following general ledger accounts listed (Note: For purposes of this exercise, date
suffixes are omitted from the Expenditures and Encumbrances accounts as
expenditures from two years appropriations do not occur in this problem.)
Cash
Taxes ReceivableCurrent
Estimated Uncollectible Current Taxes
Taxes ReceivableDelinquent
Estimated Uncollectible Delinquent Taxes

14

Interest and Penalties Receivable on Taxes
Estimated Uncollectible Interest and Penalties
Vouchers Payable
Tax Anticipation Notes Payable
Due to Other Funds
Due to Federal Government
Due to State Government
Encumbrances Outstanding
Fund BalanceNonspendableInventory of Supplies
Fund BalanceRestrictedGeneral Government
Fund BalanceRestrictedPublic Safety
Fund BalanceRestrictedPublic Works
Fund BalanceRestrictedHealth and Welfare
Fund BalanceRestrictedCulture and Recreation
Fund BalanceCommittedGeneral Government
Fund BalanceCommittedPublic Safety
Fund BalanceCommittedPublic Works
Fund BalanceCommittedHealth and Welfare
Fund BalanceCommittedCulture and Recreation
Fund BalanceAssignedGeneral Government
Fund BalanceAssignedPublic Safety
Fund BalanceAssignedPublic Works
Fund BalanceAssignedHealth and Welfare
Fund BalanceAssignedCulture and Recreation
Fund BalanceUnassigned
Budgetary Fund Balance
Estimated Revenues
Revenues
Appropriations
Expenditures
Encumbrances
b.

The post-closing trial balance for the General Fund of the City of Bingham as of
December 31, 2013, is shown on the following page. Select the [Journal] view and
create a journal entry to enter the balance sheet accounts and amounts shown in the
trial balance [Review software operating procedures in Chapter 1 of these
instructions if necessary]. Be sure to enter 2013 from the drop-down [Year] menu
and enter the paragraph number from these instructions in the [Transaction
Description] box of the [Journal] view. For this entry you should enter 2-b. Select
the appropriate accounts individually and insert the appropriate amounts. (Note:
Enter all dollar amounts without dollar signs and without commas. For all
entries, it is vitally important that the correct year be selected.)
You must enter each account and amount one line at a time by clicking [Add Entry].

15

The year and transaction description need only be entered for the first line of the
journal entry; it should remain in the boxes for the rest of the accounts. When you
have completed entering all account data and amounts, verify the accuracy of all 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.
Unpost capability. As discussed in Chapter 1 of these instructions, the City of
Smithville/City of Bingham software program permits students to unpost a
particular batch of posted transactions. Unposted entries then can be edited or
missing entries can be inserted before re-posting entries.
Select [Reports, Trial Balances, Post-Closing Trial Balance] and print or save as a
PDF file the post-closing trial balance for year 2013. If printed, retain the printed
trial balance in your personal cumulative folder until the due date assigned by your
instructor for the project. The PDF file can be submitted by e-mail if directed to do so
by your instructor.
CITY OF BINGHAM
General Fund Post-closing Trial Balance
As of December 31, 2013
General Ledger
Account Title
Debits
Cash
$ 110,000
Taxes ReceivableDelinquent
470,000
Estimated Uncollectible
Delinquent Taxes
Interest and Penalties
Receivable on Taxes
23,690
Estimated Uncollectible
Interest and Penalties
Vouchers Payable
Due to Other Funds
Fund BalanceAssignedGeneral Government
Fund BalanceCommittedPublic Safety
Fund BalanceCommittedPublic Works
Fund BalanceUnassigned
Totals
$ 603,690

Credits

$ 42,500

1,304
394,000
13,000
30,560
15,200
28,300
78,826
$ 603,690

c.

Select [Governmental ActivitiesGovernment-Wide] in the [Current
Accounting Entity] drop-down menu and the [Accounts] view tab. You will see all
of the accounts included in the trial balance on the next page, plus many other
accounts that will be used in the various chapters of the City of Bingham project.

d.

Select the [Journal] view and create a journal entry to enter the statement of net
position (i.e., balance sheet) accounts and amounts shown in the governmental

16

activities, government-wide post-closing trial balance presented on the next page. 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 2013 from the drop-down [Year] menu and enter 2d in the Transaction Description box. Select each account individually and insert the
appropriate debit or credit amount for each account.
CITY OF BINGHAM
Governmental Activities, Government-wide Level
Post-closing Trial Balance
As of December 31, 2013
Account Title
Cash
Taxes ReceivableDelinquent
Estimated Uncollectible
Delinquent Taxes
Interest and Penalties
Receivable on Taxes
Estimated Uncollectible Interest and Penalties
Land
Improvements Other than Buildings
Accumulated DepreciationImprovements
Other Than Buildings
Infrastructure
Accumulated DepreciationInfrastructure
Buildings
Accumulated DepreciationBuildings
Equipment
Accumulated DepreciationEquipment
Vouchers Payable
Accrued Interest Payable on Long-term Debt
Internal Payables to Business-type Activities
Current Portion of Long-term Debt
6% Serial Bonds Payable
Net PositionNet Investment in Capital Assets
Net PositionRestricted for Debt Service
Net PositionUnrestricted
Totals
e.

Debits
$ 1,090,000
554,000

Credits

$

98,500

31,290
2,064
1,100,000
9,000,000
2,100,000
29,190,000
11,280,000
9,300,000
2,100,000
7,600,000
3,664,000
394,000
360,000
13,000
600,000
11,400,000
25,046,000
1,014,840
207,114
$58,072,404

$58,072,404

When you have completed entering the initial data, verify the accuracy of all entries
and click [Post Entries] to post the entries to the governmental activities,
government-wide general ledger.

17

f.

Select [Reports, Trial Balances, Post-Closing Trial Balance], as directed by your
instructor print the trial balance for 2013 or save the report as a PDF. Retain the trial
balance in your cumulative file until the due date for your project or the time
specified by your instructor. Alternatively, submit the saved trial balance file by email if directed to do so by your instructor. Also, we recommend that you save a
dated backup file on a removable device, as discussed previously.

Before closing the City of Bingham click on [File] and [Save/Save As]
to save your work. Your work is NOT automatically saved.

18

Chapter 3 Recording the Annual Budget
The following budget for the General Fund of the City of Bingham was legal...

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