Problem $17-43($Algo$)($LO $17-2,17-3,17-9,17-11)$

The City of Bernard starts the year of $2020$ with the following unrestricted amounts in its general fund: cash of $$37,500$ and investments of $$86,750.$ In addition, it holds a small building bought on January $1,2019,$ for general government purposes for $$352,000$ and a related long$-$term debt of $$281,600.$ 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 $$559,000$

Sales taxes $104,100$

Dividend income $28,000$

Charges for general government services $22,500$

Charges for public safety services $11,300$

Charges for public works $6,300$

Charges for health and sanitation services $38,000$

Charges for landfill $9,450$

Grant to be used for salaries for health workers $($no eligibility requirements$)34,200$

Issued long$-$term note payable $212,000$

Sold investments $($mentioned above$)104,500$

Receivables at year$-$end:

Property taxes $($$$11,700$ is expected to be uncollectible$)150,000$

Payments:

Salary:

General government $102,000$

Public safety $115,750$

Public works $70,250$

Health and sanitation $($all from grant$)29,400$

Utilities:

General government $11,300$

Public safety $20,500$

Public works $16,700$

Health and sanitation $4,200$

Insurance:

General government $30,700$

Public safety $17,400$

Public works $($all prepaid as of the end of the year$)8,700$

Health and sanitation $5,400$

Miscellaneous:

General government $14,300$

Public safety $16,700$

Public works $13,950$

Health and sanitation $10,150$

Interest on previous debt $28,160$

Principal payment on previous debt $19,300$

Interest on new debt $19,080$

Building $($public works$)222,000$

Equipment $($public safety$)90,000$

Public works supplies $(30\%$ still held$)20,900$

Investments $129,500$

Ordered but not received:

Equipment $35,000$

Supplies $8,050$

Due at end of year:

Salaries:

General government $20,900$

Public safety $19,650$

Public works $5,100$

On the last day of the year, the city borrows $$67,000$ 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 $$302,500$ 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 $$139,050$ at year$-$end.

a$-1.$ Prepare a statement of activities for governmental activities in government$-$wide financial statements for December $31,2020,$ and the year then ended.

a$-2.$ Prepare a statement of net position for governmental activities in government$-$wide financial statements for December $31,2020,$ and the year then ended.

b$-1.$ Prepare a statement of revenues, expenditures, and other changes in fund balances for the general fund in fund financial statements as of December $31,2020,$ and the year then ended. Assume the purchases method is applied.

b$-2.$ Prepare a balance sheet for the general fund in fund financial statements as of December $31,2020,$ and the year then ended. Assume the purchases method is applied.