The City of Bernard starts the year of 2020 with the following unrestricted amounts in its general fund: cash of $42,250 and investments of $82,500. In addition, it holds a small building bought on January 1, 2019, for general government purposes for $318,000 and a related long-term debt of $254,400. 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	$597,000
Sales taxes	107,800
Dividend income	25,000
Charges for general government services	19,400
Charges for public safety services	12,050
Charges for public works	5,700
Charges for health and sanitation services	40,800
Charges for landfill	9,200
Grant to be used for salaries for health workers (no eligibility requirements)	28,500
Issued long-term note payable	221,000
Sold investments (mentioned above)	96,650
Receivables at year-end:
Property taxes ($10,100 is expected to be uncollectible)	136,500
Payments:
Salary:
General government	137,000
Public safety	107,750
Public works	74,250
Health and sanitation (all from grant)	23,400
Utilities:
General government	10,000
Public safety	20,300
Public works	17,550
Health and sanitation	6,000
Insurance:
General government	28,700
Public safety	14,200
Public works (all prepaid as of the end of the year)	8,700
Health and sanitation	4,800
Miscellaneous:
General government	12,500
Public safety	12,800
Public works	13,650
Health and sanitation	9,300
Interest on previous debt	25,440
Principal payment on previous debt	13,900
Interest on new debt	19,890
Building (public works)	222,000
Equipment (public safety)	99,000
Public works supplies (30% still held)	21,700
Investments	140,500
Ordered but not received:
Equipment	37,500
Supplies	7,250
Due at end of year:
Salaries:
General government	16,600
Public safety	20,100
Public works	7,500

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 $276,500 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 $145,650 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.

Statement of Activities For Year Ended December 31, 2020 Program Revenues Charges Grants and Expenses for Contributions Services Net (Expense) Revenue and Changes in Net Position Functions/Programs Governmental Activities Total Governmental activities: $ 236,600 $ 19,400 $ General government Public safety Public works 185,050 12,050 14,900 40,800 (217,200) $ (217,200) (173,000) (173,000) (125,815) X (125,815) 25,800 25,800 (55,330) X (55,330) Health and sanitation 43,500 $ 28,500 Interest on debt $ 465,150 $ 87,150 $ 28,500 $ (545,545) $ (545,545) Total governmental activities General revenues: Property taxes $ Sales taxes Dividend income 723,400 $ 723,400 107,800 107,800 25,000 25,000 14,150 14,150 5,150 5,150 Gain on sale of investments Gain on value of investments $ 875,500 $ 875,500 Total general revenues Change in net position: Change during 2020 Net position-beginning Net positionending $ $ 329,955 156,550 486,505 329,955 156,550 486,505 $ $ CITY OF BERNARD Statement of Net Position December 31, 2020 Governmental Activities Totals Assets: Current assets: Cash and cash equivalents Prepaid insurance $ 192,020 8,700 145,650 126,400 6,510 $ 192,020 X 8,700 145,650 126,400 Investments Receivables (net) Supplies 6,510 Total current assets $ 479,280 $ 479,280 Capital as Building-general government $ 254,400 $ 254,400 210,900 Building-public works Equipment Truck 89,100 210,900 89,100 70,000 70,000 Total assets $ 1,103,680 $ 1,103,680 Liabilities: Current liabilities: Salaries payable $ 44,200 $ 44,200 Noncurrent liabilities: