The City of Bernard starts the year of 2017 with the following unrestricted amounts in its general fund: cash of $26,500 and investments of $85,250. In addition, it holds a small building bought on January 1, 2016, for general government purposes for $320,000 and related long-term debt of $256,000. 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:

Receipts:
Property taxes	$652,000
Sales taxes	100,400
Dividend income	21,000
Charges for general government services	17,500
Charges for public safety services	8,500
Charges for public works	5,400
Charges for health and sanitation services	38,200
Charges for landfill	8,150
Grant to be used for salaries for health workers (no eligibility requirements)	36,000
Issued long-term note payable	222,000
Sold above investments	102,150
Receivables at year-end:
Property taxes ($15,600 is expected to be uncollectible)	151,500
Payments:
Salary:
General government	137,500
Public safety	116,500
Public works	86,000
Health and sanitation (all from grant)	31,500
Utilities:
General government	12,600
Public safety	16,850
Public works	13,000
Health and sanitation	6,300
Insurance:
General government	31,900
Public safety	18,800
Public works (all prepaid as of the end of the year)	6,000
Health and sanitation	6,600
Miscellaneous:
General government	19,000
Public safety	10,600
Public works	10,900
Health and sanitation	11,350
Interest on previous debt	25,600
Principal payment on previous debt	17,500
Interest on new debt	19,980
Building (public works)	240,000
Equipment (public safety)	82,000
Public works supplies (30% still held)	29,000
Investments	131,000
Ordered but not received:
Equipment	45,250
Supplies	9,400
Due at end of year:
Salaries:
General government	21,900
Public safety	18,800
Public works	6,000

On the last day of the year, the city borrowed $67,000 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 $296,500 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 $138,300 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.