The City of Manchester, New Hampshire, has only one activity, its school system. The school system is accounted for within the general fund. For convenience, assume that at the start of $20$X$4,$ the school system and the city have no assets. During the year, the city assesses property taxes of $$400,000.$ Of this amount, it collects $$320,000$ during the year and $$50,000$ within a few weeks after the end of the year and expects the remainder to be collected about six months later. The city makes the following payments during $20$X$4$: salary expense, $$100,000$; rent expense, $$70,000$; equipment $($received on January $1$ with a five$-$year life and no salvage value$),$ $$50,000$; land, $$30,000$; and maintenance expense$),$ $$20,000.$ GOVERNMENT$-$WIDE FINANCIAL STATEMENTS

STATEMENT OF ACTIVITIES

For the Year Ended December $31,20$X$4$

Governmental

Activities $($Net

Expense$)$

Governmental Activities:

$-$School System

General Revenues:

$-$Property Taxes

Change in Net Position

Beginning Net Position

Ending Net Position

STATEMENT OF NET POSITION

$\frac{12}{31}\frac{?}{20}4$

Governmental

Activities

Assets

$-$Cash

$-$Property Tax Receivable

$-$Computers

$$Building

$-$Equipment

Less: Accumulated Depreciation

$-$Land

Total Assets

Liabilities

$-$Vouchers Payable

$-$Long$-$Term Liabilities

Net Position

$-$Net Investment in Capital Assets

$-$Unrestricted Part Two: FUND FINANCIAL STATEMENTS

STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCE

For the Year Ended December $31,20$X$4$

Revenues

$-$Property Taxes

$-$Student Fees

Total Revenues

Expenditures

$-$Salaries

$$Rent

$-$Equipment

$-$Land

$-$Maintenance

$-$Computer

Total Expenditures

Change in Fund Balance

Fund Balance$-$Beginning of Year

Fund Balance$-$End of Year BALANCE SHEET

$12/31/20$X$4$

Assets

$$Cash

$-$Property Tax Receivable

Total Assets

Liabilities

$-$Voucher Payable

Deferred Inflows of Resources

$-$Unavailable Revenues

Total Deferred Inflows and Liabilities

Fund Balance

$-$Unassigned

Total Liabilities, Deferred Inflows of

Resources, and Fund Balance

In addition, on the last day of the year, the city purchases a $$200,000$ building by signing a long$-$term note payable. The building has a $20-$year life and no salvage value, and the liability accrues interest at a $0\%$ annual rate. The city also buys two computers on the last day of the year for $$4,000$ each. One will be paid for in $30$ days and the other in $90$ days. The computers should last four years and have no expected residual value. During the year, the school system charges students $$3,000$ for school fees and collects the entire amount. The city determines depreciation using the straight line method.