Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The City of Bernard starts the year of 2020 with the following unrestricted amounts in its general fund cash of $30,500 and investments of $80,500.

The City of Bernard starts the year of 2020 with the following unrestricted amounts in its general fund cash of $30,500 and investments of $80,500. In addition, it holds a small building bought on January 1, 2019, for general government purposes for $345,000 and a related long-term debt of $276,000. The building is depreciated on the straight-line method over 10 years. The annuall 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 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 long-tere note payable Sold investments (mentioned above) Receivables at year-end: Property taxes (519,800 is expected to be uncollectible). Payments: $610,000 106,000 28,000 21,800 12,650 4,200 36,900 8,100 28,400 257,000 95,350 156,500 Salary: General government Public safety Public works Health and sanitation (all from grant) Utilities: General government 110,500 Public safety Public works 113,750 70,250 25,400 11,400 17,750 16.250 Health and sanitation Insurance: General government 28,900 Public safety 20,500 Public works (all prepaid as of the end of the year) 6,600 Health and sanitation 6.600 Miscellaneous: General government 19,100 Public safety 19,600 Public works 13,650 Health and sanitation 10,500 Interest on previous debt 27,600 Principal payment on previous debt 10,000 Interest on new debt 23,130 Building (public works) 258,000 Equipment (public safety) 99,000 Public works supplies (30% still held) 26,900 Investments 149,500 Ordered but not received: Equipment 34,500 Sunnies 9.85A 17. 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 $280,500 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 year's depreciation in the year of acquisition. The investments have a market value of $159,450 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. e-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. CITY OF BERNARD Statement of Activities For Year Ended December 31, 2020 Program Revenues Functions/Programs Expenses Charges for Services Grants and Contributions. Net (Expense) Revenue and Changes in Net Position Governmental Total Activities General government Governmental activities: Public safety 110.500 28.900 113,750 20,500 Public works 70,250 4.200 Health and sanitation 25,400 36,900 nterest on debt 27.600 23,130 Total governmental activities $ 347,500 113,630 $ Seneral revenues: Property taxes Sales taxes Dividend income Sain on sale of investments Sain on value of investments Total general revenues hange in net position hange during 2020 et position beginning et position ending $ 0 $ 4 0 10 0 Req A2 > Prev 2 of 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Design And Maintenance Of Accounting Manuals

Authors: Harry L. Brown

3rd Edition

0471253685, 978-0471253686

More Books

Students also viewed these Accounting questions