The City of Bernard starts the year of 2020 with the following unrestricted amounts in its general fund: cash of $24,750 and investments of $80,750. In addition, it holds a small building bought on January 1, 2019, for general government purposes for $342,000 and a related long-term debt of $273,600. 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:

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Receipts:

Property taxes$665,000

Sales taxes100,600

Dividend income23,000

Charges for general government services19,600

Charges for public safety services11,900

Charges for public works5,100

Charges for health and sanitation services35,100

Charges for landfill12,900Grant to be used for salaries for health workers (no eligibility requirements)36,100

Issued long-term note payable248,000

Sold investments (mentioned above)99,100

Receivables at year-end:

Property taxes ($12,000 is expected to be uncollectible)134,000

Payments:

Salary:

General government139,000

Public safety112,000

Public works76,000

Health and sanitation (all from grant)31,900

Utilities:

General government9,650

Public safety19,350

Public works14,500

Health and sanitation4,800

Insurance:

General government34,000

Public safety20,300

Public works (all prepaid as of the end of the year)7,500

Health and sanitation6,600

Miscellaneous:

General government17,200

Public safety18,300

Public works9,650

Health and sanitation11,100

Interest on previous debt27,360

Principal payment on previous debt17,700

Interest on new debt22,320

Building (public works)240,000

Equipment (public safety)108,000

Public works supplies (30% still held)26,100

Investments130,000

Ordered but not received:

Equipment42,250

Supplies11,350

Due at end of year:

Salaries:

General government18,600

Public safety17,800

Public works6,600

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On the last day of the year, the city borrows $71,000 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 $275,500 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 years depreciation in the year of acquisition.

The investments have a market value of $139,700 at year-end.

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

2. 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.

3. 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.

4. 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.

Reg A1 Reg A2 Req B1 Reg 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 Net (Expense) Revenue and Changes in Net Position Charges for Grants and Functions/Programs Governmental Expenses Total Services Contributions Activities Governmental activities: General government $ 252,650 $ 19.600 Public safety 198,550 11,900 Public works 178,345 Health and sanitation 54.400 Interest on debt $ 683,945 S 31.500 $ 0 S 0 S 0 Total governmental activities General revenues S 0 S 0 Total general revenues Change in net position: Change during 2020 S 0 $ 0 S 0 S 0 CITY OF BERNARD Statement of Net Position December 31, 2020 Governmental Activities Totals Assets: Current assets S 0 S 0 Total current assets Capital assets Total assets S 0 $ 0 Liabilities: Current liabilities: Noncurrent liabilities: S 0 S Total liabilities Net position: Total net position A 0 CITY OF BERNARD Statement of Revenues, Expenditures, and Other Changes in Fund Balances - Governmental Funds For Year Ended December 31, 2020 General Fund Revenues: $ 719,900 S 719,900 Total Expenditures: Current Debt service: Capital outlay: S Total expenditures Excess deficiency) of revenues over expenses Other financing sources: 0 719,900 $ S 0 Total other financing sources Net changes in fund balance 719.900 S 719,900 Reg A1 Reg A2 Reg B1 Req B2 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: S 0 Total assets Liabilities and fund balances Liabilities: Fund balances S 0 Total liabilities and fund balance S 0 Reg A1 Reg A2 Req B1 Reg 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 Net (Expense) Revenue and Changes in Net Position Charges for Grants and Functions/Programs Governmental Expenses Total Services Contributions Activities Governmental activities: General government $ 252,650 $ 19.600 Public safety 198,550 11,900 Public works 178,345 Health and sanitation 54.400 Interest on debt $ 683,945 S 31.500 $ 0 S 0 S 0 Total governmental activities General revenues S 0 S 0 Total general revenues Change in net position: Change during 2020 S 0 $ 0 S 0 S 0 CITY OF BERNARD Statement of Net Position December 31, 2020 Governmental Activities Totals Assets: Current assets S 0 S 0 Total current assets Capital assets Total assets S 0 $ 0 Liabilities: Current liabilities: Noncurrent liabilities: S 0 S Total liabilities Net position: Total net position A 0 CITY OF BERNARD Statement of Revenues, Expenditures, and Other Changes in Fund Balances - Governmental Funds For Year Ended December 31, 2020 General Fund Revenues: $ 719,900 S 719,900 Total Expenditures: Current Debt service: Capital outlay: S Total expenditures Excess deficiency) of revenues over expenses Other financing sources: 0 719,900 $ S 0 Total other financing sources Net changes in fund balance 719.900 S 719,900 Reg A1 Reg A2 Reg B1 Req B2 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: S 0 Total assets Liabilities and fund balances Liabilities: Fund balances S 0 Total liabilities and fund balance S 0