The City of Bernard starts the year of 2024 with the following unrestricted amounts in its...
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The City of Bernard starts the year of 2024 with the following unrestricted amounts in its general fund: cash of $29,000 and Investments of $85,250. In addition, it holds a small building bought on January 1, 2023, for general government purposes for $365,000 and a related long-term debt of $292,000. 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 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 ($13,700 is expected to be uncollectible) $ 557,000 106,800 24,000 21,700 11,900 5,700 37,800 10,550 37.600 227,000 99.850 163,500 Payments: Salary: Miscellaneous: General government Public safety Public works Health and sanitation (all from grant) 97,000 103,750 81,000 31.900 Utilities: General government Public safety 11,050 20.100 Public works 16,750 Health and sanitation 5.100 Insurance: General government 32,100 Public safety 21,600 Public works (all prepaid as of the end of the year) 8,100 Health and sanitation 5,400 General government 20,000 14,300 13.050 10,800 29,200 Principal payment on previous debt Building (public works) 14,300 20,430 234,000 93,000 23,400 143,000 44,500 10,050 Public safety Public works Health and sanitation Interest on previous debt Interest on new debt Equipment (public safety) Public works supplies (30x still held) Investments Ordered but not received: Equipment Supplies Due at end of year: Salaries: General government Public safety Public works 16,000 20,350 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 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 $301,000 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 $152,950 at year-end. Required: a-1. Prepare a statement of activities for governmental activities in government-wide financial statements for December 31, 2024, and the year then ended. a-2. Prepare a statement of net position for govemmental activities in government-wide financial statements for December 31, 2024, and the year then ended. The City of Bernard starts the year of 2024 with the following unrestricted amounts in its general fund: cash of $29,000 and Investments of $85,250. In addition, it holds a small building bought on January 1, 2023, for general government purposes for $365,000 and a related long-term debt of $292,000. 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 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 ($13,700 is expected to be uncollectible) $ 557,000 106,800 24,000 21,700 11,900 5,700 37,800 10,550 37.600 227,000 99.850 163,500 Payments: Salary: Miscellaneous: General government Public safety Public works Health and sanitation (all from grant) 97,000 103,750 81,000 31.900 Utilities: General government Public safety 11,050 20.100 Public works 16,750 Health and sanitation 5.100 Insurance: General government 32,100 Public safety 21,600 Public works (all prepaid as of the end of the year) 8,100 Health and sanitation 5,400 General government 20,000 14,300 13.050 10,800 29,200 Principal payment on previous debt Building (public works) 14,300 20,430 234,000 93,000 23,400 143,000 44,500 10,050 Public safety Public works Health and sanitation Interest on previous debt Interest on new debt Equipment (public safety) Public works supplies (30x still held) Investments Ordered but not received: Equipment Supplies Due at end of year: Salaries: General government Public safety Public works 16,000 20,350 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 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 $301,000 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 $152,950 at year-end. Required: a-1. Prepare a statement of activities for governmental activities in government-wide financial statements for December 31, 2024, and the year then ended. a-2. Prepare a statement of net position for govemmental activities in government-wide financial statements for December 31, 2024, and the year then ended.
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Advanced Accounting
ISBN: 9781264798483
15th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer And Timothy Doupnik
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