the City of Bernard starts the year of 2020 with the following unrestricted amounts in its general fund: cash of $23,500 and investments of $86,500. In addition, it holds a small building bought on January 1, 2019, for general government purposes for $359,000 and a related long-term debt of $287,200. 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 $585,000 Sales taxes 106,900 Dividend income 23,000 Charges for general government services 19,100 Charges for public safety services 11,450 Charges for public works 5,700 Charges for health and sanitation services 33,000 Charges for landfill 12,650 Grant to be used for salaries for health workers (no eligibility requirements) 27,700 Issued long-term note payable 233,000 Sold investments (mentioned above) 101,750 Receivables at year-end: Property taxes ($10,900 is expected to be uncollectible) 164,000 Payments: Salary: General government 116,000 Public safety 112,750 Public works 74,750 Health and sanitation (all from grant) 22,900 Utilities: General government 12,750 Public safety 20,900 Public works 17,450 Health and sanitation 5,700 Insurance: General government 26,300 Public safety 12,700 Public works (all prepaid as of the end of the year) 7,500 Health and sanitation 6,600 Miscellaneous: General government 20,300 Public safety 15,300 Public works 9,850 Health and sanitation 9,000 Interest on previous debt 28,720 Principal payment on previous debt 11,300 Interest on new debt 20,970 Building (public works) 234,000 Equipment (public safety) 99,000 Public works supplies (30% still held) 22,100 Investments 131,000 Ordered but not received: Equipment 41,250 Supplies 11,800 Due at end of year: Salaries: General government 15,200 Public safety 19,650 Public works 7,200

On the last day of the year, the city borrows $70,000 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 $301,000 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 years depreciation in the year of acquisition.

The investments have a market value of $138,100 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.

Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Prepare a statement of activities for governmental activities in government-wide financial statements for December 31, 2020, and the year then ended. (For columns under "Net (Expense) Revenue and Changes in Net Position", enter values to be deducted with negative sign. Enter rest of the values as positive.) CITY OF BERNARD Statement of Activities For Year Ended December 31, 2020 Program Revenues Charges for Grants and Services Contributions Net (Expense) Revenue and Changes in Net Position Governmental Total Activities Functions/Programs Expenses Governmental activities: General government Public safety Health and sanitation Interest on debt $ 0 $ 0 $ 0 $ 0 $ 0 Total governmental activities General revenues: Property taxes Sales taxes Gain on sale of investments Dividend income $ 0 $ 0 Total general revenues Change in net position: Change during 2020 Net position-beginning $ 0 $ 0 Net positionending $ 0 $ 0 Prepare a statement of net position for governmental activities in government-wide financial statements for December 31, 2020, and the year then ended. CITY OF BERNARD Statement of Net Position December 31, 2020 Governmental Activities Totals Assets: Current assets: Cash and cash equivalents Prepaid insurance Investments Receivables (net) Total current assets $ 0 $ 0 Capital assets: Total assets $ 0 $ 0 Liabilities: Current liabilities: Salaries payable Noncurrent liabilities: Total liabilities $ 0 $ 0 Net position: Total net position $ 0 $ 0 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. CITY OF BERNARD Statement of Revenues, Expenditures, and Other Changes in Fund Balances - Governmental Funds For Year Ended December 31, 2020 General Fund Revenues: 106,900 23,000 Property taxes Sales taxes Dividend income Charges for services Grant Investments (realized gain) Investments (unrealized gain) Total $ 129,900 Expenditures: Current: General governmental Public safety Public works Health and sanitation Debt service: Principal payment on debt Interest on debt 234,000 Capital outlay: Building Equipment Truck $ $ 234,000 (104,100) Total expenditures Excess (deficiency) of revenues over expenses Other financing sources: Proceeds from long-term note Proceeds from bank loan $ (104,100) Total other financing sources Net changes in fund balance Fund balance-beginning Fund balance-ending $ (104,100) 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. CITY OF BERNARD Balance Sheet Governmental Funds December 31, 2020 General Fund Assets: Cash and cash equivalents Investments Receivables, net Supplies Prepaid insurance Total assets $ 0 Liabilities and fund balances: Liabilities: Salaries payable Fund balances: Nonspendable Restricted for salaries Committed for equipment and supplies Unassigned $ 0 Total liabilities and fund balance $ 0 Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Prepare a statement of activities for governmental activities in government-wide financial statements for December 31, 2020, and the year then ended. (For columns under "Net (Expense) Revenue and Changes in Net Position", enter values to be deducted with negative sign. Enter rest of the values as positive.) CITY OF BERNARD Statement of Activities For Year Ended December 31, 2020 Program Revenues Charges for Grants and Services Contributions Net (Expense) Revenue and Changes in Net Position Governmental Total Activities Functions/Programs Expenses Governmental activities: General government Public safety Health and sanitation Interest on debt $ 0 $ 0 $ 0 $ 0 $ 0 Total governmental activities General revenues: Property taxes Sales taxes Gain on sale of investments Dividend income $ 0 $ 0 Total general revenues Change in net position: Change during 2020 Net position-beginning $ 0 $ 0 Net positionending $ 0 $ 0 Prepare a statement of net position for governmental activities in government-wide financial statements for December 31, 2020, and the year then ended. CITY OF BERNARD Statement of Net Position December 31, 2020 Governmental Activities Totals Assets: Current assets: Cash and cash equivalents Prepaid insurance Investments Receivables (net) Total current assets $ 0 $ 0 Capital assets: Total assets $ 0 $ 0 Liabilities: Current liabilities: Salaries payable Noncurrent liabilities: Total liabilities $ 0 $ 0 Net position: Total net position $ 0 $ 0 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. CITY OF BERNARD Statement of Revenues, Expenditures, and Other Changes in Fund Balances - Governmental Funds For Year Ended December 31, 2020 General Fund Revenues: 106,900 23,000 Property taxes Sales taxes Dividend income Charges for services Grant Investments (realized gain) Investments (unrealized gain) Total $ 129,900 Expenditures: Current: General governmental Public safety Public works Health and sanitation Debt service: Principal payment on debt Interest on debt 234,000 Capital outlay: Building Equipment Truck $ $ 234,000 (104,100) Total expenditures Excess (deficiency) of revenues over expenses Other financing sources: Proceeds from long-term note Proceeds from bank loan $ (104,100) Total other financing sources Net changes in fund balance Fund balance-beginning Fund balance-ending $ (104,100) 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. CITY OF BERNARD Balance Sheet Governmental Funds December 31, 2020 General Fund Assets: Cash and cash equivalents Investments Receivables, net Supplies Prepaid insurance Total assets $ 0 Liabilities and fund balances: Liabilities: Salaries payable Fund balances: Nonspendable Restricted for salaries Committed for equipment and supplies Unassigned $ 0 Total liabilities and fund balance $ 0