Jefferson County established a capital project fund in 2019 to build low-income housing with the transfer of $100,000 from the general fund. A portion of that was expended on engineering studies in 2019. the following transactions occurred during 2020:

Capital project fund trial balance:

December 31, 2019

Debit Credit

Cash 72000

Fund balance 72000

1. April 1,2020, 4 percent bonds with a face value of $800,000 were issued in the amount of $817,000. the bond premium was transferred to the debt service fund.

2. the county received notice that it had met eligibility requirements for a federal government grant intended to support the capital project in the amount of $265,000. The cash will be received when the project is completed in February 2021.

3. The county issued a contract for the construction in the amount of $1,030,000

4. The contractor periodically bills the county for construction completed to date. During the year, bills totaling $680,000 were received. By year-end, a total of $605,000 had been paid.

Jefferson County established a debt service fund to make interest and principal payments on the bonds issued in item 1 above. Bond payments are made on October 1 and April 1 of each year. Interest is based on an annual rate of 4 percent. a principal payment of $27,000 is due in 2020. The following occurred during 2020:

5. The bond premium was received by the debt service fund through transfer from the capital project fund.

6. September 30, $43,000 was transferred from the general fund for the October 1 bond payment.

7. The first debt service payment was made on October 1,2020. '

The Elmwood Family Reading enrichment fund was established in December 2019, funded by a bequest with the legal restriction that only earnings, and not principal, can be used for the purchase of books for the James K. Polk Library in Jefferson County. The principal amount that must be maintained is $500,000. the following transactions occurred during 2020:

Permanent Fund trial balance:

December 31, 2019

Debit Credit

Receivable from Grantor $500,000

Nonspendable Fund Balances-Library purchases $500,000

8.The elmwood family pledge of $500,000 was received in donated corporate bonds with a fair value of $370,000 and the balance in cash.

9. $130,000 was invested in the U.S. government securities.

10. Interest in the amount of $16,500 was received in cash during the year.

11. During the year, books totaling $11,500 were ordered for the library.

12. During the year, the library reported receiving books with an invoice amount totaling $11,500, $10,700 of the amounts due for book purchases had been paid by year-end.

13. An additional $700 of interest had accrued on the investments at December 31 and will be received in January of next year.

14. The corporate bonds had a market value of $372,500 and the U.S. securities had a market value of $129,800 as of December 31.

Question:

A) Prepare a Statement of revenues, expenditures, and changes in fund balance for the government funds.

CITY OF SALEM Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds For the Year Ended December 31, 2020 Special Revenue Courthouse Renovation Debt Service Total Governmental General $15,361,830 $ $ 15,361,830 11,761,522 11,761,522 Revenues Property taxes Other local taxes Charges for services Intergovernmental Miscellaneous 1,601,435 291,243 1,892,678 7,098,698 3,456,194 441,548 10,996,440 1,262,549 1,262,549 37,086,034 3,747,437 441,548 41,275,019 Total revenues Expenditures Current: 3,353,502 3,353,502 1,456,734 1,981,144 3,437,878 8,216,347 8,216,347 4,602,273 4,602,273 4,418,294 4,418,294 8,887,834 8,887,834 General government Judicial administration Public safety Public works Health and welfare Education Parks and recreation Community development Capital outlay Debt service: Principal Interest 3,055,325 3,055,325 899,209 1,093,804 1,993,013 10,924,818 10,924,818 1,155,326 1.155,326 11 924,818 924,818 3,353,502 3,353,502 Current: General government Judicial administration Public safety Public works 1,456,734 1,981,144 3,437,878 8,216,347 8,216,347 4,602,273 4,602,273 4,418,294 4,418,294 8,887,834 8,887,834 3,055,325 3,055,325 899,209 1,093,804 1,993,013 Health and welfare Education Parks and recreation Community development Capital outlay Debt service: Principal Interest 10,924,818 10,924,818 1,155,326 1,155,326 924,818 924,818 34,889,518 3,074,948 10,924,818 2,080,144 50,969,428 Total expenditures Revenues over (under) 2,196,516 672,489 (10,483,270) (2,080,144) (9,694,409) 9,675,400 9,675,400 2,080,144 2,080,144 (3,256,899) (289,593) (3,546,492) expenditures Other financing sources (uses) Issuance of debt Transfers from other funds Transfers (to) other funds Total other financing sources (uses) Excess of revenues and other sources over (under) expenditures and other uses Fund balance-beginning of year (3,256,899) (289,593) 9,675,400 2,080,144 8,209,052 (1,060,383) 382,896 (807,870) (1,485,357) 12,338,963 189,118 1,719,902 230,000 14,477,983 $ Fund balance-end of year $11,278,580 $ 572,014 $ 912,032 230,000 $12,992,626 CITY OF SALEM Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds For the Year Ended December 31, 2020 Special Revenue Courthouse Renovation Debt Service Total Governmental General $15,361,830 $ $ 15,361,830 11,761,522 11,761,522 Revenues Property taxes Other local taxes Charges for services Intergovernmental Miscellaneous 1,601,435 291,243 1,892,678 7,098,698 3,456,194 441,548 10,996,440 1,262,549 1,262,549 37,086,034 3,747,437 441,548 41,275,019 Total revenues Expenditures Current: 3,353,502 3,353,502 1,456,734 1,981,144 3,437,878 8,216,347 8,216,347 4,602,273 4,602,273 4,418,294 4,418,294 8,887,834 8,887,834 General government Judicial administration Public safety Public works Health and welfare Education Parks and recreation Community development Capital outlay Debt service: Principal Interest 3,055,325 3,055,325 899,209 1,093,804 1,993,013 10,924,818 10,924,818 1,155,326 1.155,326 11 924,818 924,818 3,353,502 3,353,502 Current: General government Judicial administration Public safety Public works 1,456,734 1,981,144 3,437,878 8,216,347 8,216,347 4,602,273 4,602,273 4,418,294 4,418,294 8,887,834 8,887,834 3,055,325 3,055,325 899,209 1,093,804 1,993,013 Health and welfare Education Parks and recreation Community development Capital outlay Debt service: Principal Interest 10,924,818 10,924,818 1,155,326 1,155,326 924,818 924,818 34,889,518 3,074,948 10,924,818 2,080,144 50,969,428 Total expenditures Revenues over (under) 2,196,516 672,489 (10,483,270) (2,080,144) (9,694,409) 9,675,400 9,675,400 2,080,144 2,080,144 (3,256,899) (289,593) (3,546,492) expenditures Other financing sources (uses) Issuance of debt Transfers from other funds Transfers (to) other funds Total other financing sources (uses) Excess of revenues and other sources over (under) expenditures and other uses Fund balance-beginning of year (3,256,899) (289,593) 9,675,400 2,080,144 8,209,052 (1,060,383) 382,896 (807,870) (1,485,357) 12,338,963 189,118 1,719,902 230,000 14,477,983 $ Fund balance-end of year $11,278,580 $ 572,014 $ 912,032 230,000 $12,992,626