38. The following information pertains to the City of Williamson for 2008, its first year of legal existence. For convenience, assume that all transactions are for the General Fund, which has three separate functions: general government, public safety, and health and sanitation.

Receipts:
Propertytaxes.
Franchisetaxes.
Charges for general government services.
Charges for public safetyservices.
Charges for health and sanitation services.
Issued long-term note payable.
Receivables at end of year:
Property taxes (90 percent estimated to be collectible) . Payments:
Salary:
Generalgovernment.
Publicsafety.
Health and sanitation.
Rent:
Generalgovernment.
Publicsafety.
Health and sanitation.
Maintenance:
Generalgovernment.
Publicsafety.
Health and sanitation.
Insurance:
Generalgovernment.
Public safety ($2,000 still prepaid at end of year)
Health and sanitation.
Interest ondebt.
Principal payment on debt.
Building.
Equipment.
Supplies (20 percent still held) (public safety).
Investments.
Ordered but not received:
Equipment.
Due in one month at end of year:
Salaries:
Generalgovernment.
Publicsafety.
Health and sanitation.
$320,000 42,000 5,000 3,000 42,000 200,000 90,000 66,000 39,000 22,000 11,000 18,000 3,000 21,000 5,000 9,000 8,000 11,000 12,000 16,000 4,000 120,000 80,000 15,000 90,000 12,000 4,000 7,000 8,000 Compensated absences for general government workers at year-end total $13,000. These amounts will not be taken until late in the year 2009.
The city received a piece of art this year valued at $14,000 that it is using for general govern¬ ment purposes. There are no eligibility requirements. The city chose not to capitalize this property.
The general government uses the building acquired and is depreciating it over 10 years using the straight-line method with no salvage value. The city uses the equipment for health and sanitation and depreciates it using the straight-line method over five years with no salvage value.
The investments are valued at $103,000 at the end of the year.

a. Prepare a statement of activities and a statement of net assets for governmental activities for December 31,2008, and the year then ended.

b. Prepare a statement of revenues, expenditures, and other changes in fund balances and a balance sheet for the General Fund as of December 31, 2008, and the year then ended. Assume that the city applies the consumption method.