The following information pertains to the City of Williamson for 2008, its first year of legal existence. For convenience, assume that all transactions are for the General Fund, which has three separate functions: general government, public safety, and health and sanitation.

Receipts:

Property Taxes $320,000

Franchise Taxes $42,000

Charges for general government services $5,000

Charges for public safety services $3,000

Charges for health and sanitation services $42,000

Issued long term note payable $200,000

Receivables at end of year:

Property taxes (90% estimated to be collectible) $90,000

Payments:

Salary:

General Government $66,000

Public Safety $39,000

Health and sanitation $22,000

Rent:

General Government $11,000

Public Safety $18,000

Health and sanitation $3,000

Maintenance:

General Government $21,000

Public Safety $5,000

Health and sanitation $9,000

Insurance:

General government $8,000

Public safety ($2,000 still prepaid at end of the year) $11,000

Health and sanitation $12,000

Interest on debt $16,000

Principal payment on debt $4,000

Building $120,000

Equipment $80,000

Supplies (20% still held) (public safety) $15,000

Investments $90,000

Ordered but not received:

Equipment $12,000

Due in one month at the end of the year:

Salaries:

General government $4,000

Public safety $7,000

Health and sanitation $8,000

Compensated absences for general government workers at year-end total $13,000. These amounts will not be taken until late in the year 2009.

The city received a piece of art this year is valued at $14,000 that it is using for general government purposes. There are no eligibility requirements. The city chose not to capitalize on this property.

The general government uses the building acquired and is depreciating it over 10 years using the straight-line method with no salvage value. The city uses the equipment for health and sanitation and depreciates it using the straight-line method over five years with no salvage value.

The investments are valued at $103,000 at the end of the year.

Required

Question 1. Prepare a statement of activities and a statement of net assets for Government activities for December 31, 2008, and the year then ended.

Question 2. Prepare a statement of revenues, expenditures, and other changes in fund balances and a balance sheet for the General Fund as of December 31, 2008, and the year then ended. Assume that the city applies the consumption method.