The City of Bernard starts the year of 2015 with the following unrestricted amounts in its General Fund: cash of $31,250 and investments of $75,250. In addition, it holds a small building bought on January 1, 2014, for general government purposes for $322,000 and related long-term debt of $257,600. 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	$581,000
Sales taxes	104,800
Dividend income	21,000
Charges for general government services	20,900
Charges for public safety services	12,450
Charges for public works	6,900
Charges for health and sanitation services	34,000
Charges for landfill	9,700
Grant to be used for salaries for health workers
(no eligibility requirements)	30,600
Issued long-term note payable	221,000
Sold above investments	92,250
Receivables at year-end:
Property taxes ($11,200 is expected to be uncollectible)	164,000
Payments:
Salary:
General government	107,500
Public safety	118,250
Public works	86,500
Health and sanitation (all from grant)	27,000
Utilities:
General government	10,900
Public safety	19,450
Public works	13,950
Health and sanitation	4,200
Insurance:
General government	31,300
Public safety	18,300
Public works (all prepaid as of the end of the year)	6,900
Health and sanitation	5,100
Miscellaneous:
General government	15,400
Public safety	10,300
Public works	9,000
Health and sanitation	9,500
Interest on previous debt	25,760
Principal payment on previous debt	15,200
Interest on new debt	19,890
Building (public works)	210,000
Equipment (public safety)	111,000
Public works supplies (30% still held)	28,800
Investments	117,500
Ordered but not received:
Equipment	31,750
Supplies	9,350
Due at end of year:
Salaries:
General government	21,300
Public safety	21,050
Public works	5,700

The city leased a truck on the last day of the year. The first payment will be made at the end of the next year. Total payments will amount to $92,600 but have a present value of $69,000.

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 $292,500 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 years depreciation in the year of acquisition.

The investments are valued at $127,100 at year-end.

a.

Prepare a statement of activities and a statement of net position for governmental activities for December 31, 2015, and the year then ended.

b.	Prepare a statement of revenues, expenditures, and other changes in fund balances and a balance sheet for the General Fund as of December 31, 2015, and the year then ended. Assume that the purchases method is being applied.