Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image

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.

The City of Bernard starts the year of 2024 with the following unrestricted amounts in its general fund: cash of $22,250 and investments of $88,500. In addition, it holds a small building bought on January 1, 2023, for general government purposes for $395,000 and a related long-term debt of $316,000. The building is depreciated on the straight-line method over 10 years. The annual interest rate on the debt 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: 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 investments (mentioned above) Receivables at year-end: Property taxes ($13,000 is expected to be uncollectible) Payments: Salary: General government Public safety Public works Health and sanitation (all from grant) Utilities: General government $ 626,000 108,500 20,000 15,300 8,550 5,100 36,600 10, 200 32,900 251,000 102,650 158,000 128,000 94,000 73,500 27,200 12,250 Public safety 18,300 Public works 17,100 Health and sanitation 6,600 Insurance: General government 27,200 Public safety 20,000 Public works (all prepaid as of the end of the year) 6,000 Health and sanitation 5,100 Miscellaneous: General government 18,600 Public safety 12,500 Public works 13,600 Health and sanitation Interest on previous debt Interest on new debt 11,050 31,600 Principal payment on previous 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: 19,600 22,590 240,000 111,000 21,500 153,000 25,750 11,300 General government Public safety 17,600 21,450 5,700 Public works On the last day of the year, the city borrows $74,000 from a local bank and uses the 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 opens a landfill this year that it records within its general fund. It is a public works function. Closure costs today is estimated as $287,000 although officials do not expect the landfill to be filled for nine more years. The city has incurred no costs to date. The landfill is now 15 percent filled. For the equipment and supplies that were 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 arrive. The new building is depreciated over 20 years using the straight-line method and no residual value. 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 have a market value of $158,950 at year-end.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni

13th edition

1259444953, 978-1259444951

More Books

Students also viewed these Accounting questions

Question

Describe four common misunderstandings of Gestalt psychology.

Answered: 1 week ago

Question

In a bankruptcy liquidation, what actions does the trustee perform?

Answered: 1 week ago