The City of Bernard starts the year of with the following unrestricted amounts in its general fund: cash of $ and investments of $ In addition, it holds a small building bought on January for general

government purposes for $ and a related longterm debt of $ The building is depreciated on the straightline method over  years. The annual interest rate on the debt is  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 taxesDividend incomeCharges for general government servicesCharges for public safety servicesCharges for public worksCharges for health and sanitation servicesCharges for landfillGrant to be used for salaries for health

workers no eligibility requirementsIssued longterm note payableSold investments mentioned aboveReceivables at yearend: Property taxes $ is expected to be uncollectible

Payments: Salary: General governmentPublic safetyPublic worksHealth and sanitation all from grantUtilities: General governmentPublic safetyPublic worksHealth and

sanitationInsurance: General governmentPublic safetyPublic works all prepaid as of the end of the yearHealth and sanitationMiscellaneous: General governmentPublic safetyPublic worksHealth and sanitationInterest on previous debtPrincipal payment on previous debtInterest on new debtBuilding public worksEquipment public safetyPublic works

supplies  still heldInvestmentsOrdered but not received: EquipmentSuppliesDue at end of year: Salaries: General governmentPublic safetyPublic worksOn the last day of the year, the city borrows $ 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 $ 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  percent filled.For the equipment and supplies that were ordered but not yet received, the City Council the highest decisionmaking body in the government has voted to honor the commitment when the items arrive.The

new building is depreciated over  years using the straightline method and no residual value. Depreciation of the equipment is similar except that its life is only  years. Assume the city records a full years depreciation in

the year of acquisition. The investments have a market value of $ at yearend.

Required: a Prepare a statement of activities for governmental activities in governmentwide financial statements for December  and the year then ended.

a Prepare a statement of net position for governmental activities in governmentwide financial statements for December  and the year then ended.

b Prepare a statement of revenues, expenditures, and other changes in fund balances for the general fund in fund financial statements as of December and the year then ended. Assume the purchases method is applied.

b Prepare a balance sheet for the general fund in fund financial statements as of December and the year then ended. Assume the purchases method is applied. 

Answer rating: 100% (QA)

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