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.

Prepare 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 Functions/Programs Charges for Services Expenses Net (Expense) Revenue and Changes in Net Position Business- Governmental Activities type Activities Operating Grants and Contributions Capital Grants and Contributions Total $ 20,900$ Governmental activities General government Public safety Health and sanitation Interest on debt 188,200 $ 102,180 X 80,700 24,720 5,700 5,800 45,600 (161,600) (96,380) X (35,100) (24,720) $ (161,600) (96,380) (35,100) (24,720) $ 395,800 $ 57.100 $ 0 $ 20,900 $ (317,800) $ 0 $ (317,800) Total governmental activities General revenues: Property taxes $ 530,940 $ 530,940 50,700 Franchise taxes 0 50,700 Investments (gain) 13,900 13,900 $ $ 0 595,540 277,740 $ 595,540 277,740 0 Total general revenues Change in net position Net positionbeginning Net position-ending $ 277,740 $ 0 $ 277,740 Prepare a statement of net position for governmental activities for December 31, 2017. (Amou indicated by a minus sign.) CITY OF WILLIAMSON Statement of Net Position December 31, 2017 Governmental Activities Business- type Activities Total Assets: $ 113,400 4,500 Cash and cash equivalents Prepaid expenses Investments Receivables (net) Inventories $ 113,400 4,500 126,900 126,900 95,940 3,720 268,600 95,940 3,720 268,600 Capital assets (net) Total assets $ 613,060 $ 0 $613,060 Liabilities: 20,100 Salaries payable Compensated absences liability Noncurrent liabilities 19,300 302,820 20,100 19,300 302,820 Total Liabilities $ 342,220 $ 0 $342,220 Net position: Invested in capital assets, net of related debt Unrestricted (deficit) (34,220) 310,240 (34,220) 310,240 X Total net position $ 276,020 $ 0 $276,020 For Year Ended December 31, 2017 General Fund Total Government Funds Revenues: $ Property taxes Franchise taxes Charges for services Investments (gain) $ 530,940 50,700 57,100 13,900 530,940 50,700 57,100 13,900 Total revenues $ 652,640 $ 652,640 $ Expenditures: General government Public safety Health and sanitation $ 126,600 91,020 61,700 126,600 91,020 61,700 6,180 Debt service: Principal payment on debt Interest on debt Capital outlay 6,180 24,720 24,720 309,000 309,000 $ 619,220 $ 619,220 $ 33,420 $ 33,420 Total expenditures Excess of revenues over expenses Other financing sources: Proceeds from long-term note 309,000 30,900 $ 309,000 $ 30,900 64,320 342,420 Total other sources Net changes in fund balance Fund balances (Beginning) Fund balances (Ending) $ 342,420 $ 64,320 CITY OF WILLIAMSON Balance Sheet Governmental Funds December 31, 2017 General Fund Total Government Funds Assets: 113,400 113,400 Cash and cash equivalents Prepaid expenses Investments 4,500 126,900 95,940 3,720 4,500 126,900 95,940 3,720 Receivables, net Inventories Total assets $ 344,460 $ 344,460 Liabilities: Salaries payable $ 20,100 20,100 Total liabilities $ 20,100 $ 20,100 Fund balances: Nonspendable Committed for equipment Unassigned 8,220 13,500 321,700 X 8,220 13,500 321,700 X $ 343,420 $ 343,420 Total fund balances Total liabilities and fund balances $ 363,520 $ 363,520 Prepare 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 Functions/Programs Charges for Services Expenses Net (Expense) Revenue and Changes in Net Position Business- Governmental Activities type Activities Operating Grants and Contributions Capital Grants and Contributions Total $ 20,900$ Governmental activities General government Public safety Health and sanitation Interest on debt 188,200 $ 102,180 X 80,700 24,720 5,700 5,800 45,600 (161,600) (96,380) X (35,100) (24,720) $ (161,600) (96,380) (35,100) (24,720) $ 395,800 $ 57.100 $ 0 $ 20,900 $ (317,800) $ 0 $ (317,800) Total governmental activities General revenues: Property taxes $ 530,940 $ 530,940 50,700 Franchise taxes 0 50,700 Investments (gain) 13,900 13,900 $ $ 0 595,540 277,740 $ 595,540 277,740 0 Total general revenues Change in net position Net positionbeginning Net position-ending $ 277,740 $ 0 $ 277,740 Prepare a statement of net position for governmental activities for December 31, 2017. (Amou indicated by a minus sign.) CITY OF WILLIAMSON Statement of Net Position December 31, 2017 Governmental Activities Business- type Activities Total Assets: $ 113,400 4,500 Cash and cash equivalents Prepaid expenses Investments Receivables (net) Inventories $ 113,400 4,500 126,900 126,900 95,940 3,720 268,600 95,940 3,720 268,600 Capital assets (net) Total assets $ 613,060 $ 0 $613,060 Liabilities: 20,100 Salaries payable Compensated absences liability Noncurrent liabilities 19,300 302,820 20,100 19,300 302,820 Total Liabilities $ 342,220 $ 0 $342,220 Net position: Invested in capital assets, net of related debt Unrestricted (deficit) (34,220) 310,240 (34,220) 310,240 X Total net position $ 276,020 $ 0 $276,020 For Year Ended December 31, 2017 General Fund Total Government Funds Revenues: $ Property taxes Franchise taxes Charges for services Investments (gain) $ 530,940 50,700 57,100 13,900 530,940 50,700 57,100 13,900 Total revenues $ 652,640 $ 652,640 $ Expenditures: General government Public safety Health and sanitation $ 126,600 91,020 61,700 126,600 91,020 61,700 6,180 Debt service: Principal payment on debt Interest on debt Capital outlay 6,180 24,720 24,720 309,000 309,000 $ 619,220 $ 619,220 $ 33,420 $ 33,420 Total expenditures Excess of revenues over expenses Other financing sources: Proceeds from long-term note 309,000 30,900 $ 309,000 $ 30,900 64,320 342,420 Total other sources Net changes in fund balance Fund balances (Beginning) Fund balances (Ending) $ 342,420 $ 64,320 CITY OF WILLIAMSON Balance Sheet Governmental Funds December 31, 2017 General Fund Total Government Funds Assets: 113,400 113,400 Cash and cash equivalents Prepaid expenses Investments 4,500 126,900 95,940 3,720 4,500 126,900 95,940 3,720 Receivables, net Inventories Total assets $ 344,460 $ 344,460 Liabilities: Salaries payable $ 20,100 20,100 Total liabilities $ 20,100 $ 20,100 Fund balances: Nonspendable Committed for equipment Unassigned 8,220 13,500 321,700 X 8,220 13,500 321,700 X $ 343,420 $ 343,420 Total fund balances Total liabilities and fund balances $ 363,520 $ 363,520