1.

City council adopts an annual budget for the general fund with estimated revenues of $1,700,000,
appropriations of $1,500,000, and approved transfers of $120,000.

2. Property taxes of $1,300,000 are levied. City expects to collect all but 3% of taxes.

3. Two new police cars are ordered for $150,000.

4. A transfer of $50,000 is made from the general fund to the debt service fund.

5. A bond payable of $40,000 is paid along with $10,000 in interest.

6. A $2,000,000 bond is issued at face to acquire a building to convert to a school.

7. The two police cars are received with an invoice for $152,000.

8. The building for the school is acquired for $2,000,000 cash.

9. Depreciation on the new police cars is computed as $30,000.

10. The city borrowed $100,000 on a 90-day note.

11. A special assessment project is begun. The city sells $80,000 in bonds at face to finance the
project. If the debt is not paid by the assessments collected, the city has pledged to guarantee the debt.

12. A contractor completes the assessment project and is paid $80,000.

13. Citizens are assessed $85,000 for the project

14. The assessments of $85,000 are collected in full. The debt, plus $5,000 in interest is repaid.

15. The city receives a $10,000 grant for repairing a park.

16. The city spends $4,000 on park repairs.