Reference no: EM132612719

The City of Bernard starts the year of 2017 with the following unrestricted amounts in its general fund: cash of $26,250 and investments of $86,500. In addition, it holds a small building bought on January 1, 2016, for general government purposes for $315,000 and related long-term debt of $252,000. The building is being depreciated on the straight-line method over 10 years. The interest rate is 10 percent. The general fund has four separate functions: general government, public safety, public works, and health and sanitation.

Other information includes the following:

Receipts:

Property taxes $648,000

Sales taxes 99,300

Dividend income 29,000

Charges for general government services 23,100

Charges for public safety services 11,950

Charges for public works 4,500

Charges for health and sanitation services 34,700

Charges for landfill 10,950

Grant to be used for salaries for health workers (no eligibility requirements)25,600

Issued long-term note payable 257,000

Sold above investments 102,800

Receivables at year-end:

Property taxes ($11,800 is expected to be uncollectible) 142,000

Payments:

Salary:

General government 132,500

Public safety 117,250

Public works 85,000

Health and sanitation (all from grant) 22,000

Utilities:

General government 11,950

Public safety 19,850

Public works 15,450

Health and sanitation 3,900

Insurance:

General government 28,000

Public safety 13,700

Public works (all prepaid as of the end of the year) 6,900

Health and sanitation 5,100

Miscellaneous:

General government 18,700

Public safety 15,100

Public works 11,450

Health and sanitation 8,550

Interest on previous debt 25,200

Principal payment on previous debt 13,000

Interest on new debt 23,130

Building (public works)246,000

Equipment (public safety)111,000

Public works supplies (30% still held)24,500

Investments 158,000

Ordered but not received:

Equipment 39,000

Supplies 8,700

Due at end of year:

Salaries:

General government 19,800

Public safety 21,050

Public works 7,800

• On the last day of the year, the city borrowed $68,000 from a local bank and used that money to buy a truck. The first payment on the loan (plus interest) will be made at the end of the next year.
• The city started a landfill this year that it is recording within its general fund. It is included as a public works function. Closure costs today would be $266,500 although the landfill is not expected to be filled for nine more years. The city has incurred no costs to date although the landfill is now 15 percent filled.
• For the equipment and supplies that have been ordered but not yet received, the City Council (the highest decision-making body in the government) has voted to honor the commitment when the items are received.
• The new building is being depreciated over 20 years using the straight-line method and no salvage value, whereas depreciation of the equipment is similar except that its life is only 10 years. Assume the city records a full year's depreciation in the year of acquisition.
• The investments are valued at $163,050 at year-end.

Question 1: statement of activities for governmental activities for December 31, 2017, and the year then ended.

Question 2: statement of net position for governmental activities for December 31, 2017, and the year then ended.

Question 3: statement of revenues, expenditures, and other changes in fund balances for the General Fund as of December 31, 2017, and the year then ended. Assume that the purchases method is being applied.

Question 4: balance sheet for the General Fund as of December 31, 2017, and the year then ended. Assume that the purchases method is being applied.