1. 812.

   Presented on the following pages are partial financial statements for the City of Shenandoah, including:

   Fiscal year 2017:

   A. Total Governmental Funds:

   Balance Sheet

   Statement of Revenues, Expenditures, and Changes in Fund Balances

   B. Internal Service Fund:

   Statement of Net Position

   Statement of Revenues, Expenses, and Changes in Net Position

   Fiscal year 2016:

   A. Total Governmental Funds:

   Balance Sheet

   B. Government-wideGovernmental Activities:

   Statement of Net Position

   CITY OF SHENANDOAH Balance Sheet Governmental Funds
   	December 31, 2017 Total Governmental Funds	December 31, 2016 Total Governmental Funds
   Assets
   Cash and cash equivalents	$1,372,900	$1,029,675
   Investments	136,450	102,338
   Receivables:
   Taxes	97,522	73,142
   Interest	28,768	31,325
   Due from state government	513,000	384,750
   Total assets	2,148,640	1,621,230
   Liabilities and deferred inflows
   Accounts payable	46,600	37,950
   Due to other funds	10,200	10,400
   Deferred inflows: property taxes	78,000	45,000
   Total liabilities and deferred inflows	134,800	93,350
   Fund balances
   Restricted	259,300	124,248
   Committed	1,009,450	807,560
   Assigned	438,390	350,712
   Unassigned	306,700	245,360
   Total fund balances	2,013,840	1,527,880
   Total liabilities and fund balances	$2,148,640	$1,621,230

   CITY OF SHENANDOAH Statement of Revenues, Expenditures, and Changes in Fund BalancesGovernmental Funds For the Year Ended December 31, 2017
   	Total Governmental Funds
   Revenues
   Property taxes	$ 6,469,000
   Sales taxes	3,115,000
   Interest	32,000
   Licenses and permits	800,000
   Intergovernmental	1,763,000
   Miscellaneous	270,000
   Total revenues	12,449,000
   Expenditures
   Current
   General government	1,692,300
   Public safety	4,974,150
   Landfill operations	2,337,400
   Cultural and recreational	3,258,700
   Capital outlay	2,508,600
   Debt service
   Principal	500,000
   Interest	445,000
   Total expenditures	15,716,150
   Revenues over (under) expenditures	(3,267,150)
   Other financing sources (uses)
   Proceeds of bonds	4,000,000
   Premium on bonds	50,000
   Transfers from other funds	145,900
   Transfers (to) other funds	(145,900)
   	4,050,000
   Excess of revenues and other sources over (under) expenditures and other uses	782,850
   Fund balancebeginning of year	1,230,990
   Fund balanceend of year	$2,013,840

   CITY OF SHENANDOAH Statement of Net Position Proprietary Funds
   	December 31, 2017 Governmental Activities: Internal Service Fund
   Current assets
   Cash and cash equivalents	$ 27,000
   Receivables:
   Due from General Fund	10,200
   Due from Enterprise Fund	11,000
   Inventories	25,000
   Total current assets	73,200
   Noncurrent assets
   Land	25,000
   Buildings	44,000
   Accumulated depreciationbuildings	(13,200)
   Equipment	21,000
   Accumulated depreciationequipment	(12,600)
   	64,200
   Total assets	$137,400
   Liabilities
   Accounts payable	18,400
   Total current liabilities	18,400
   Noncurrent liabilities
   Advance from Enterprise Fund	10,000
   Total noncurrent liabilities	10,000
   Total liabilities	28,400
   Net position
   Net investment in capital assets	54,200
   Unrestricted	54,800
   Total net position	$109,000

   CITY OF SHENANDOAH Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds For the Year Ended December 31, 2017
   	Governmental Activities: Internal Service Fund
   Revenues
   Charges for sales and services	$ 370,200
   Total revenues	370,200
   Operating expenses
   Cost of sales and services	358,600
   Administration	10,300
   Depreciation	5,300
   Total expenditures	374,200
   Operating (loss)	(4,000)
   Nonoperating income
   Investment income	6,000
   	6,000
   Change in net position	2,000
   Net positionbeginning of year	107,000
   Net positionend of year	$ 109,000

   CITY OF SHENANDOAH Statement of Net Position Government-wide Statements
   	December 31, 2016 Governmental Activities
   Current assets
   Cash and cash equivalents	$ 1,230,000
   Investments	95,500
   Receivables (net)
   Taxes receivable	69,500
   Due from business activities	23,000
   Due from state government	156,000
   Total current assets	1,574,000
   Noncurrent assets
   Land	7,230,000
   Buildings	22,600,000
   Accumulated depreciationbuildings	(13,000,000)
   Infrastructure	27,500,000
   Accumulated depreciationbuildings	(9,000,000)
   Equipment	6,370,000
   Accumulated depreciationequipment	(3,100,000)
   Total capital assets	38,600,000
   Total assets	$40,174,000
   Liabilities
   Accrued interest on bonds	180,000
   Accounts payable	96,500
   Total current liabilities	276,500
   Noncurrent liabilities
   General obligation bonds payable	6,000,000
   Accrued costs for landfill closure and postclosure care	29,500
   Total noncurrent liabilities	6,029,500
   Total liabilities	6,306,000
   Net position
   Net investment in capital assets	32,600,000
   Unrestricted	1,268,000
   Total net position	$33,868,000

   Additional Information

   1. $856,700 of the capital assets purchased in fiscal year 2017 was equipment. All remaining capital acquisitions were for a new building.
   2. Depreciation of general fixed assets: buildings $1,100,000, infrastructure $975,000, and equipment $537,500.
   3. The City had $6,000,000 of 6 percent general obligation bonds (issued at par) outstanding at December 31, 2016. In addition, the City issued $4,000,000 of 5 percent bonds on January 2, 2017 (sold at a premium). Interest payments on both bond issues are due on January 1 and July 1. Principal payments are made on January 1. Interest and principal payments for the current year include:

      	6 Percent General Obligation Bonds	5 Percent General Obligation Bonds
      Principal PaymentJanuary 1	$500,000
      Interest PaymentJanuary 1	180,000
      Interest PaymentJuly 1	165,000	$100,000

      Page 256The January interest payments are accrued for purposes of the government-wide statements but not the fund-basis statements. The bond premium is to be amortized in the amount of $2,500 per year.

   4. Property taxes expected to be collected more than 60 days after year-end are deferred in the fund-basis statements.
   5. At the end of 2017, the accumulated liability for landfill closure and postclosure care costs is estimated to be $36,500. Landfill operations are reported in the General FundPublic Works.
   6. The internal service fund serves several departments of the General Fund, all within the category of General Government. The internal service fund was created at the end of 2016 and had no capital assets or long-term liabilities at the end of 2016.

2. Prepare all worksheet journal entries necessary for fiscal year 2017 to convert the governmental fund-basis amounts to the economic resources measurement focus and accrual basis required for the governmental activities sections of the government-wide statements.