The City of Bernard starts the year of 2020 with the following unrestricted amounts in its general fund: cash of $23,750 and investments of $81,750. In addition, it holds a small building bought on January 1, 2019, for general government purposes for $324,000 and a related long-term debt of $259,200. 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: $631,000 107,100 26,000 24,400 12,550 6,000 38,800 8,400 28,900 260,000 96,850 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-term note payable Sold investments (mentioned above) Receivables at year-end: Property taxes ($15,100 is expected to be uncollectible) 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 Public safety 134,000 112,000 105,500 86,000 23,800 11,450 16,350 17,350 5,700 32,700 15,500 Public works Health and sanitation Interest on previous debt Principal payment on previous debt Interest on new debt Building (public works) Equipment (public safety) Public works supplies (308 still held) Investments Ordered but not received: Equipment Supplies Due at end of year: Salaries: General government Public safety Public works 13,000 8,500 25,920 15,600 23,400 246,000 114,000 28,700 114,500 28,750 9,600 19,800 19,300 6,300 On the last day of the year, the city borrows $68,000 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 $298,500 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 $124,150 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. CITY OF BERNARD Statement of Activities For Year Ended December 31, 2020 Program Revenues Charges Grants and Expenses Services Contributions Functions/Programs Net (Expense) Revenue and Changes in Net Position Governmental Activities Total for $ 220.950 $ 24,400 Governmental activities: General government Public safety Public works Health and sanitation $ 180,350 199,815 43,400 49,320 12,550 14,400 38,800 (196,550) (167,800) (185,415) 24,300 (49,320) $ (196,550) (167,800) (185,415) 24,300 (49,320) $ 28,900 Interest on debt $ 693,835 $ 90,150 $ 28,900 $ (574,785) $ (574.785) Total governmental activities General revenues: Property taxes Sales taxes Dividend income Gain on sale of investments $ $ 00 749,900 107,100 26,000 15.100 749,900 107,100 26,000 15.100 $ 693,835 $ 90,150 $ 28,900 S (574,785) $ (574,785) Total governmental activities General revenues: Property taxes Sales taxes Dividend income Gain on sale of investments Gain on value of investments $ 749,900 107,100 26,000 15,100 9.650 749,900 107,100 26,000 15,100 9,650 $ 907.750 $ 907.750 Total general revenues Change in net position: Change during 2020 Net position-beginning Net position-ending $ $ 332,965 332,965 0 X 332,965 s 0 X 332,965 CITY OF BERNARD Statement of Net Position December 31, 2020 Governmental Activities Totals Assets: Current assets: Cash and cash equivalents Investments Receivables (net) Supplies Prepaid insurance $ 209,680 124,150 118,900 8,610 7,800 0 $ 469,140 Total current assets Capital assets: Building-general government Building-public works Equipment Truck CITY OF BERNARD Statement of Revenues, Expenditures, and Other Changes in Fund Balances - Governmental Funds For Year Ended December 31, 2020 General Fund Revenues: Property taxes $ 749,900 Sales taxes 107,100 Dividend income 26,000 Charges for services 90,150 Grant 28,900 Investments (realized gain) 15,100 Investments (unrealized gain) 9,650 Total $ 1,026,800 Expenditures: Current: General governmental $ 188,550 Debt service: Principal payment on debt Interest on debt 15,600 49,320 Capital outlay: Building Equipment Truck 246,000 114,000 68,000 $ 1,052,970 (26,170) $ Total expenditures Excess (deficiency) of revenues over expenses Other financing sources: Proceeds from long-term note Truck $ 260,000 68,000 x $ Total other financing sources Net changes in fund balance Fund balance-beginning 328,000 301,830 1,055,000 CITY OF BERNARD Balance Sheet Governmental Funds December 31, 2020 General Fund Assets: Cash and cash equivalents Investments Receivables, net Supplies Prepaid insurance $ 209680 124,150 118,900 8,610 7,800 $ 469,140 Total assets Liabilities and fund balances: Liabilities: Salaries payable $ 45,400 Fund balances: Total assets $ 469,140 Liabilities and fund balances: Liabilities: Salaries payable $ 45,400 $ Fund balances: Nonspendable Restricted for salaries Committed for equipment and supplies Unassigned 16,410 5,100 8,610 X 430,455 X $ 460,575 505,975 Total liabilities and fund balance $