17/11

The City of Bernard starts the year of 2017 with the following unrestricted amounts in its general fund: cash of $29,250 and Investments of $72,000. In addition, it holds a small building bought on January 1, 2016, for general government purposes for $381,000 and related long-term debt of $304,800. 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: $533,000 105,000 30,000 24,400 8, 100 5,400 34,500 8,808 28,000 212,000 89,900 177,000 Receipts: Property taxes Sales taxes Dividend income Charges for general government services Charges for public safety services Charges for public works Charges for health and sanitation services Charges for landfill Grant to be used for salaries for health workers (no eligibility requirements) Issued long-term note payable Sold above investments Receivables at year-endi Property taxes ($12,100 is expected to be uncollectible) Paynents: Salary: General government Public safety Public Works Health and sanitation (all from grant) Utilities: General government Public safety Public works Health and sanitation Insurance General government Public safety Public works (all prepaid as of the end of the year) Health and sanitation Miscellaneous General government Public safety Public works Health and sanitation 109,5ee 98,000 85,000 23,800 10,800 19,250 16,200 4,800 32,180 15,600 8,100 5,700 19,500 14,400 9.600 10.150 Preu 32,180 15,600 8,100 5,700 General government Public safety Public works (all prepaid as of the end of the year) Health and sanitation Miscellaneous : General government Public safety Public works Health and sanitation Interest on previous debt Principal payment on previous debt Interest on new debt Building (public works) Equipment (public safety) Public works supplies (30% still held) Investments Ordered but not received: Equipment Supplies Due at end of year: Salaries: General government Public safety Public works 19,500 14,400 9,600 10, 150 30,480 17,700 19,080 216,000 96,80 27, 100 113,000 26,250 11,050 14,900 18,200 5,700 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 $304,000 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 $121,700 at year-end. The investments are valued at $121,700 at year-end. a-1. Prepare a statement of activities for governmental activities for December 31, 2017, and the year then ended. a-2. Prepare a statement of net position for governmental activities for December 31, 2017, and the year then ended. b-1. Prepare a 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. b-2. Prepare a balance sheet for the General Fund as of December 31, 2017, and the year then ended. Assume that the purchases method is being applied. Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Req B1 Req B2 Prepare a statement of activities for governmental activities for December 31, 2017, and the year then ended. (Amounts to be deducted should be indicated by a minus sign.) CITY OF BERNARD Statement of Activities For Year Ended December 31, 2017 Program Revenues Expenses Charges for Grants and Services Contributions Functions Programs Governmental activities: Net (Expense) Revenue and Changes in Net Position Governmental Activities Total be deducted should be indicated by CITY OF BERNARD Statement of Activities For Year Ended December 31, 2017 Program Revenues Charges for Grants and Services Contributions Net (Expense) Revenue and Changes in Net Position Governmental Activities Total Functions/Programs Expenses Governmental activities: Total governmental activities General revenues: 0 $ 0 $ 0 $ 0 $ 0 Total general revenues Change in net position: Change during 2017 $ 0 $ 0 $ 0 $ 0 0 $ 0 be deducted should be indicated by CITY OF BERNARD Statement of Activities For Year Ended December 31, 2017 Program Revenues Charges for Grants and Services Contributions Net (Expense) Revenue and Changes in Net Position Governmental Activities Total Functions/Programs Expenses Governmental activities: Total governmental activities General revenues: 0 $ 0 $ 0 $ 0 $ 0 Total general revenues Change in net position: Change during 2017 $ 0 $ 0 $ 0 $ 0 0 $ 0