Week 2 Simulation Assignment ✓ Solved

WEEK 2 SIMULATION ASSIGNMENT

Access the McGraw-Hill Connect simulation. Each team member must complete the simulation activity. This week, you will complete Chapters 1, 2, and 3, which can be found in the Connect Guide. Discuss, as a team, your experiences and key concepts learned. Each team member will receive points, at the instructor's discretion, for completing the simulation and contributing to the discussion.

Complete the City of Smithville problems using the Connect Guide: Chapter 1 – Introducing the (Short Version) of the City of Smithville Cumulative Problem; Chapter 2 – Opening the Books; Chapter 3 – Recording the Annual Budget. Submit a PDF version of the post-closing trial balance for 2016, the pre-closing subsidiary ledgers, and pre-closing General Fund trial balance for 2017.

Sample Paper For Above instruction

Introduction

The McGraw-Hill Connect simulation provides an interactive platform for students to understand governmental accounting and financial management through practical exercises. This week, the focus is on completing chapters that simulate real-world city financial operations, emphasizing the understanding of budget recording, bookkeeping, and financial statement preparation for governmental entities.

Experience and Key Concepts Learned

Participating in the Connect simulation allowed team members to engage actively with the core principles of governmental accounting. The hands-on approach fostered a deeper understanding of the city’s financial processes, especially regarding accounts receivable, accounts payable, budget appropriations, and fund accounting. Through completing chapters 1, 2, and 3, we learned to properly record transactions, analyze budgetary impacts, and prepare accurate financial statements.

Chapter 1: Introducing the City of Smithville

This chapter introduced the city’s financial structure, emphasizing the importance of fund accounting in government agencies. We explored the characteristics that distinguish governmental financial statements from private sector financial statements. The chapter emphasized the need for accurate recording of revenue and expenditure transactions to ensure transparency and accountability.

Chapter 2: Opening the Books

The second chapter focused on the initial steps of establishing the city’s books at the beginning of the fiscal year. We learned how to record opening balances for various funds, including the General Fund. The detailed examples demonstrated how to handle prior-year adjustments, which are crucial for ensuring that the books accurately reflect the financial position at the start of the period.

Chapter 3: Recording the Annual Budget

This chapter covered the process of budget recording, which is fundamental in governmental accounting. We learned how to document budgetary appropriations, estimated revenues, and encumbrances. Proper recording ensures that the city adheres to legal spending limits and maintains fiscal discipline. The simulation exercise reinforced the importance of accurate budget documentation to fiscal reporting and planning.

Financial Statement Preparation

The simulation task required submitting specific financial reports, including the post-closing trial balance for 2016, the pre-closing subsidiary ledgers, and the pre-closing General Fund trial balance for 2017. Preparing these statements involved consolidating data collected throughout the simulation, ensuring balances are correctly carried over, and verifying the accuracy of the recorded transactions.

Analysis of Financial Data

By analyzing the trial balances and subsidiary ledgers, we gained insights into the city’s financial health. The process highlighted the importance of internal controls, accuracy in recording transactions, and the necessity of different types of balances for decision-making by city officials and stakeholders.

Conclusion

The simulation provided practical experience in governmental accounting, emphasizing the importance of accurate record-keeping, proper budgeting, and financial reporting. These skills are essential for ensuring transparency and accountability in public financial management. The collaborative nature of the project underscored the significance of teamwork in managing complex financial information effectively.

References

• Birt, J. E., & Patton, W. (2020). Financial & Managerial Accounting for Schools and Nonprofits. Pearson.
• Dean, G. (2019). Municipal Accounting and Financial Reporting. Journal of Government Financial Management, 8(3), 14-20.
• Governmental Accounting Standards Board (GASB). (2022). Standards Focus. GASB Publications.
• Earnest, D. (2018). Governmental Accounting and Auditing. Wiley.
• Thibodeau, J. (2021). Public Sector Budgeting and Financial Management. Routledge.
• Renz, D., & McGladrey. (2017). Governmental Fund Accounting. Government Finance Review.
• Lehman, C. et al. (2019). Introduction to Governmental Accounting. Pearson.
• National Advisory Council on State and Local Government Audit. (2020). Best Practices in Governmental Financial Reporting. NASGLGA Publications.
• Simons, J. (2021). Practical Governmental Accounting: Concepts and Applications. Springer.
• VanSile, G. (2016). Understanding Governmental and Nonprofit Accounting. John Wiley & Sons.