Prepare the general journal entries to properly record each of the following transactions and events in the appropriate general ledger accounts of the appropriate funds for the year ended June 30, 2011. The City of Middlesettlements uses a series of each type of nominal account (e.g., RevenuesProperty Taxes, RevenuesOther, ExpendituresOperations, ExpendituresCapital Outlay, ExpendituresDebt ServiceInterest, OFSBond Principal, OFUTransfer to GF, etc.), except for budgetary entries where no additional detail is required. The General Capital Assets and General Long-term Liability accounts are updated whenever a relevant transaction occurs.

ADDITIONAL INFORMATION:

The fiscal year for the City is July 1 to June 30.

All premiums on bonds payable, net of bond issue costs, are transferred to the DSF that will be used to service the debt. The amounts transferred are used for future bond interest payments.

When bonds are issued at a discount or bond issue costs are incurred, a special transfer is made from the GF to the fund used to account for the bond proceeds to reimburse it for the discount and issue costs. This transfer is over and above any previously authorized transfers from the GF to that fund.

The City uses the consumption method / periodic inventory system to account for supplies.

The City is constructing a new municipal building. Capital Projects Fund #1 will be used to account for this construction. The expected cost of and the sources of proportional financing for the municipal building are:

Bond issue (authorized July 1, 2010, 6%, 30-year serial bonds) $ 3,000

State grant for 30% of actual qualifying costs incurred (expenditure driven) 1,500

Transfer from the General Fund 500

Total sources and cost of building $5,000

All amounts are in thousands of dollars.

1. Sufficient funds were transferred from the General Fund to the DSF #1 to finance one year's principal retirement, interest, and fiscal agent fees ($10) for the municipal building bonds. (See entries #7 and #13)

2. The City issued another $100 in supplies to its departments.

3. DSF #1 made the required March 31 bond payments. (See entries #7 and #11)

4. At year end an inventory of supplies revealed that $80 were on hand. The appropriate adjustments were made.

Requirement: Prepare the general journal entries for the City of Middlesettlements, using standard fund-type terminology, identifying the fund or list for which the entry is being prepared. Appropriate abbreviations are acceptable (e.g., GF, SRF, CPF, DSF, GCA, GLTL, OFS, OFU). If no entry is required, write No Entry Required and briefly explain why. Do not include formal entry explanations or dates, but include any important assumptions made and all calculations. If an amount is not given in the exam, you must show your work to demonstrate how you determined the amount.