The Following Information pertains to teh CIty of Williamson for $2020,$ its first year of legal existence. For convenience, assume that all transactions are for the general fund, which has three separate functions: General Goverment, Public Safety, and Health and Sanitation.

Receipts:

Property Tax $320,000$

Franchise Tax $42,000$

Charges for general goverment services $5,000$

Charges for public safety service $3,000$

Charges for health and sanitation services $42,000$

Issued long$-$term note payable $200,000$

Receivables at end of the year:

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

Payments:

Salary:

General Goverment $66,000$

Public Safety $39,000$

Health and Sanitation $22,000$

Rent:

General goverment $11,000$

Public Safety $18,000$

Health and Sanitation $3,000$

Maintenance:

General Goverment $21,000$

Public Safety $5,000$

Health and Sanitation $9,000$

Insurance:

General Goverment $8,000$

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

Health and Sanitation $12,000$

Interest on debt $16,000$

Principal payment on debt $4,000$

Storage shed $120,000$

Equipment $80,000$

Supplies $(20\%$ still held $)($Public Safety$)15,000$

Investments $90,000$

Ordered but not received:

Equipment $12,000$

Liabilities, all of which are due in one month at end of year:

Salaries:

General Goverment $4,000$

Public Safety $7,000$

Health and Sanitation $8,00$

Compensated absences $($such as vacations and sick days$)$ legally owed to general goverment workers at year$-$end total $$13,000.$ These amounts will not be taken by the employees until so late in $2021$ taht the payment is not viewed as requiring $2020$ current finanical resources.

The city received a piece of art this year as a donation. It is valued at $$14,000.$ The city plans to use it for general goverment purposes. The gift has no eligiblity requirements. The city chose not to capitalize this property.

General government activities use the storage shed that was acquired this year. It is depreciated over a $10-$year period using the straight$-$line method with no residual value. The city uses the equipment for health and sanitation and depreciates it using the straight$-$line method over five years with no residual value.

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

For the equipment that was ordered but not yet received, the City Council $($the highest decision$-$making body in the government$)$ voted to honor the commitment when the equipment eventually arrives.

$1.$ Prepare journal entries for the fund financial statements;

$2.$ Prepare a Satement of Revenues, Expenditures, and Other Changes in Fund Balance and a Balance Sheet for the fund;

$3.$ Prepare journal entries for the government$-$wide financial statements;

$4$ Prepare a Satement of Activities and a Statement of Net position for governmental activities in government$-$wide financial satements;

Answer rating: 100% (QA)

Prepare journal entries for the fund financial statements Record property tax receipts Debit Cash Cr... View the full answer