Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The City of Bernard starts the year of 2020 with the following unrestricted amounts in its general fund: cash of $26,000 and investments of
The City of Bernard starts the year of 2020 with the following unrestricted amounts in its general fund: cash of $26,000 and investments of $75,000. In addition, it holds a small building bought on January 1, 2019, for general government purposes for $381,000 and a related long-term debt of $304,800. 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: Charges for public safety services Receipts: Property taxes Sales taxes Dividend income Charges for general government services Charges for public works $590,000 108,400 25,000 22,700 11,500 6,300 Charges for health and sanitation services 31,700 Charges for landfill 9,850 Grant to be used for salaries for health workers (no eligibility requirements) 35,200 Issued long-term note payable 212,000 Sold investments (mentioned above) 93,400 Receivables at year-end: Property taxes ($11,600 is expected to be uncollectible) 141,500 Payments: Salary: General government Public safety Public works Health and sanitation (all from grant) Utilities: General government Public safety Public works Health and sanitation Insurance: General government 129,000 101,000 80,000 30,100 11,700 16,900 13,900 4,500 32,900
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started