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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 $80,250.
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 $80,250. In addition, it holds a small building bought on January 1, 2019, for general government purposes for $364,000 and a related long-term debt of $291,200. 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: $555,000 105,700 27,000 15,600 10,250 4,200 37,100 11,650 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 ($18,600 is expected to be uncollectible) Payments: Salary: General government Public safety Public works Health and sanitation (all from grant) Utilities: 34,900 227,000 97,150 176,000 97,500 101,500 75,750 29,800 Conannl Lament 11 an 11,000 16,450 16,500 5,400 33,200 19,700 8,700 5, 100 Utilities: General government Public safety Public works Health and sanitation Insurance: General government Public safety Public works (all prepaid as of the end of the year) Health and sanitation Miscellaneous : General government Public safety 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 (30% still held) Investments Ordered but not received: Equipment Supplies Due at end of year: Salaries: General government Public safety Public works 16,900 18,100 12,250 10,300 29,120 15,000 20,430 222,000 105,000 23,600 122,000 28,750 11,300 14,700 18,050 5,700 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 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 $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 year's depreciation in the year of acquisition. The investments have a market value of $127,000 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. Req A1 Req A2 Req B1 Req B2 Prepare a statement of activities for governmental activities in government-wide financial statements for December 31 and the year then ended. (For columns under "Net (Expense) Revenue and Changes in Net Position", enter values to be with negative sign. Enter rest of the values as positive.) CITY OF BERNARD Statement of Activities For Year Ended December 31, 2020 Program Revenues Charges Grants and Expenses for Services Contributions Net (Expense) Revenue and Changes in Net Position Governmental Total Activities Functions/Programs $ Governmental activities: General government Public safety Public Works Health and sanitation Interest on debt $ 209,750 184,300 183,795 50,600 49,550 $ 15,600 10,250 15,850 37,100 (194,150) (174,050) (167,945) 21,400 (49,550) $ (194,150) (174,050) (167,945) 21,400 (49,550) $ 34,900 $ 677,995 $ 78,800 $ 34,900 $ (564,295) $ (564,295) Total governmental activities General revenues: Dronartu taver 7122 7124 Capital assets: Building-general government Building-public works Equipment Truck 291,200 210,900 94,500 68,000 $ 291,200 210,900 94,500 68,000 $ 1,098,780 $ 1,098,780 Total assets Liabilities: Current liabilities: Salaries payable 38,500 $ 38,500 $ Noncurrent liabilities: Bank loan payable Closure liability landfill Long-term notes payable 68,000 45,975 503,200 $ 68,000 45,975 503,200 $ 655,675 $ 655,675 Total liabilities Net position: Invested in capital assets, net of related debt Restricted for salaries (Grant) Unrestricted (deficit) 161,400 5,100 276,605 $ 161,400 5,100 276,605 una $ Revenues: Property taxes Sales taxes Dividend income Sales taxes Grant Investments (realized gain) Investments (unrealized gain) 712,400 105,700 27,000 78,800 34,900 16,900 5,000 $ 980,700 Total Expenditures: Current: General governmental Public safety Public works Health and sanitation $ 173,550 173,800 142,500 50,600 Debt service: Principal payment Interest on debt debt 15,000 49,550
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