The City of Bernard starts the year of 2020 with the following unrestricted amounts in its general fund: cash of $31,750 and investments of $89,000. In addition, it holds a small building bought on January 1, 2019, for general government purposes for $382,000 and a related long-term debt of $305,600. 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: Receipts: Property taxes $569,000 Sales taxes 104,800 Dividend income 29,000 Charges for general government services 16,900 Charges for public safety services 9,100 Charges for public works 5,400 Charges for health and sanitation services 40,300 Charges for landfill 8,350 Grant to be used for salaries for health workers (no eligibility requirements) 34,400 Issued long-term note payable 260,000 Sold investments (mentioned above) 104,350 Receivables at year-end: Property taxes ($14,500 is expected to be uncollectible) 178,500 Payments: Salary: General government 97,000 Public safety 96,750 Public works 69,250 Health and sanitation (all from grant) 31,100 Utilities: General government 13,650 Public safety 18,450 Public works 16,400 Health and sanitation 6,000 Insurance: General government 31,400 Public safety 12,000 Public works (all prepaid as of the end of the year) 7,200 Health and sanitation 6,000 Miscellaneous: General government 12,300 Public safety 16,000 Public works 11,000 Health and sanitation 11,850 Interest on previous debt 30,560 Principal payment on previous debt 16,700 Interest on new debt 23,400 Building (public works) 246,000 Equipment (public safety) 114,000 Public works supplies (30% still held) 28,000 Investments 143,000 Ordered but not received: Equipment 30,250 Supplies 7,250 Due at end of year: Salaries: General government 23,500 Public safety 18,650 Public works 4,800

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 $306,500 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 $152,800 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.