The City of Bernard starts the year of 2017 with the following unrestricted amounts in its general fund: cash of $36,750 and investments of $71,750. In addition, it holds a small building bought on January 1, 2016, for general government purposes for $346,000 and related long-term debt of $276,800. 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:

On the last day of the year, the city borrowed $72,000 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 $304,500 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 $121,000 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.

Receipts: Property taxes Sales taxee 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 $605,000 99,600 28,000 15,000 38,000 Issued long-term note p Sold above investments eligibility requirements) ayable 30,600 230,000 86,250 Receivables at year-end: Property taxes ($10,000 is expected to be uncollectible 150,000 Payments: Salary: General government Public safety Public works Health and sanitation (all from grant) 129,000 109,250 77,750 26,100 Utilities: General government Public safety Public works Health and sanitation 13,800 19,300 15,350 Insurance: General government Public safety Public works (all prepaid as of the end of the year) Health and sanitation 31,500 21,700 7,200 Miscellaneous: General government Public safety Public works Health and sanitation 16,000 10,000 Interest on previous debt Brincipal payment on previous debt Interest on new debt Building (public works) Equipment (public safety) Public works supplies (30% still held) Investments 27,680 18,200 20,700 228,000 102,000 26,300 112,000 Ordered but not received: Equipment Supplies 32,500 Due at end of year: Salaries: General government Public safety Public works 14,600 19,250 5,700