The City of Bernard starts the year of with the following unrestricted amounts in its general fund: cash of $ and investments of $ In addition, it holds a small building bought on January for general government purposes for $ and a related longterm debt of $ The building is depreciated on the straightline method over years. The annual interest rate on the debt is 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 longterm note payable

Sold investments mentioned above

Receivables at yearend:

Property taxes $ is expected to be uncollectible

Payments:

Salary:

General government

Public safety

Public works

Health and sanitation all from grant

Utilities:

General government

Public safety

Public works

Health and sanitation

Insurance:

General government

Public safety

Public works all prepaid as of the end of the year

Health and sanitation

Miscellaneous:

General government

Public safety

Public works

Health and sanitation

Interest on previous debt

Principal payment on previous debt

Interest on new debt

Building public works

Equipment public safety

Public works supplies still held

Investments

Ordered but not received:

Equipment

Supplies

Due at end of year:

Salaries:

General government

Public safety

Public works

On the last day of the year, the city borrows $ 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 $ 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 percent filled.

For the equipment and supplies that were ordered but not yet received, the City Council the highest decisionmaking body in the government has voted to honor the commitment when the items arrive.

The new building is depreciated over years using the straightline method and no residual value. Depreciation of the equipment is similar except that its life is only years. Assume the city records a full years depreciation in the year of acquisition.

The investments have a market value of $ at yearend.

Required:

a Prepare a statement of activities for governmental activities in governmentwide financial statements for December and the year then ended.

a Prepare a statement of net position for governmental activities in governmentwide financial statements for December and the year then ended.

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

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