a) prepare journal entries

b) prepare trial balance

The following information pertains to the City of Williamson for 2017, 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:

Property taxes

$435,000

Franchise taxes

50,700

Charges for general government services

5,700

Charges for public safety services

5,800

Charges for health and sanitation services

45,600

Issued long-term note payable

309,000

Receivables at end of year:

Property taxes (90% estimated to be collectible)

106,600

Payments:

Salary:

General government

66,600

Public safety

44,900

Health and sanitation

25,900

Rent:

General government

13,400

Public safety

23,200

Health and sanitation

3,300

Maintenance:

General government

34,200

Public safety

7,800

Health and sanitation

9,500

Insurance:

General government

7,900

Public safety ($4,500 still prepaid at end of year)

15,900

Health and sanitation

14,300

Interest on debt

24,720

Principal payment on debt

6,180

Storage shed

214,000

Equipment

95,000

Supplies (20% still held) (public safety)

18,600

Investments

113,000

Ordered but not received:

Equipment

13,500

Due in one month at end of year:

Salaries:

General government

4,500

Public safety

6,900

Health and sanitation

8,700

Compensated absences (such as vacations and sick days) are legally owed to general government workers at year-end total $19,300. These amounts will not be taken by the employees until so late in 2018 that the payment is not viewed as requiring 2017 current financial resources.

The city received a piece of art this year as a donation. It is valued at $20,900. It will be used for general government purposes. There are no eligibility requirements. The city chose not to capitalize this property.

The general government uses the storage shed that was acquired this year. It is being depreciated 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 $126,900 at the end of the year.

For the equipment that has 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 equipment is received.

Cash and cash equivalents 9 $ 113,400 0 $ Prepaid expenses 9 4,500 a Investments 0 126,900 a Receivables, net 9 95,940 9 Inventories 0 3,720 a Total assets $ 344.450 $ $ 20,100 0 $ Liabilities: Salaries payable Total liabilities $ Fund balances: _ Nonspendable a _$ Committed for equipment 0 Unassigned 0 _ _$ $ 363.520 $ Total fund balances Total liabilities and fund balances 113,400 0 4,500 0 126,900 0 95,940 0 3,720 0 344,460 20,100 0 20,100 8,220 0 13,500 0 321,700 9 343,420 363,520 For Year Ended December 31, 2017 General Total Fund Government Funds Revenues: Property taxes $ 530,940 ~ $ 530,940 Franchise taxes 50,700 50,700 Charges for services 57, 100 57, 100 Investments (gain) V 13,900 13,900 Total revenues $ 652,640 $ 652,640 Expenditures: General government $ 126,600 ~ $ 126,600 Public safety 91,020 X 91,020 X Health and sanitation 61,700 61,700 Debt service: Principal payment on debt 6, 180 6, 180 Interest on debt 24,720 24,720 Capital outlay 309,000 309,000 Total expenditures $ 619,220 $ 619,220 Excess of revenues over expenses $ 33,420 $ 33,420 Other financing sources: Proceeds from long-term note V 309,000 30,900 X Total other sources $ 309,000 $ 30,900 Net changes in fund balance 342,420 64,320 Fund balances (Beginning) V Fund balances (Ending) $ 342,420 $ 64,320Prepare a statement of activities for governmental activities for December 31, 2017. CITY OF WILLIAMSON Statement of Activities For Year Ended December 31, 2017 Program Revenues Net (Expense) Revenue and Changes in Net Position Charges Operating Capital Functions/Programs Expenses for Grants and Grants and Governmental Business- type Total Services Contributions Contributions Activities Activities Governmental activities General government $ 188,200 $ 5,700 $ 20,900 ~ $ (161,600) $ (161,600) Public safety 102, 180 X 5,800 (96,380) X (96,380) X Health and sanitation 80,700 45,600 (35, 100) (35, 100) Interest on debt 24,720 (24,720) (24,720) Total governmental activities $ 395,800 $ 57, 100 $ 0 $ 20,900 $ (317,800) $ 0 $ (317,800) General revenues: Property taxes $ 530,940 $ 530,940 Franchise taxes 50,700 50,700 Investments (gain) 13,900 13,900 Total general revenues $ 595,540 $ 0 $ 595,540 Change in net position 277,740 0 277,740 Net position-beginning V Net position-ending $ 277,740 0 $ 277,740Prepare a statement of net position for governmental activities for December 31, 2017. (Amou1 indicated by a minus sign.) Assets: Cash and cash equivalents 113,400 0 4,500 0 126,900 0 95,940 0 113,400 9 4,500 0 126,900 0 95,940 0 3,720 0 266,600 9 Prepaid expenses Investments Receivables (net) Inventories Capital assets (net) 266,600 0 Total assets 613,060 613,060 Liabilities: 20,100 0 19,300 0 302,620 a 20,100 0 19,300 9 302,320 0 Salaries payable Compensated absences liability Noncurrent liabilities Total Liabilities Net position: 342,220 342,220 (34,220) 0 310,240 9 (34,220) 9 310,240 9 Invested in capital assets, net of related debt Unrestricted (decit) 276,020 276,020 Total net position - - - - - - - - _I_ - - - - - _I_ - - - - _I_