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)