70.2K

Verified Solution

Link Copied!

35. The following information pertains to the City of Williamson for 2017, its first year of legal exis- tence. For convenience, assume that all transactions are for the general fund, which has three sepa- rate functions: general government, public safety, and health and sanitation. $320,000 42.000 5,000 3,000 42,000 200,000 ...... Receipts: Property taxes ........ Franchise taxes ...... Charges for general government services .... Charges for public safety services ... Charges for health and sanitation services ....... Issued long-term note payable ..... Receivables at end of year: Property taxes (90% estimated to be collectible)......... Payments: Salary: General government... Public safety ............ Health and sanitation 90,000 66,000 39,000 22.000 (continued) 11,000 18,000 3,000 21,000 5,000 9,000 Rent: General government ... Public safety. ...... Health and sanitation ... Maintenance: General government ......... Public safety ... Health and sanitation ..... Insurance: General government .......... Public safety ($2,000 still prepaid at end of year) ...... Health and sanitation .. Interest on debt ...... Principal payment on debt ...... Storage shed .... Equipment.. Supplies (20% still held) (public safety) ....... Investments ..... Ordered but not received: Equipment .......... Due in one month at end of year: Salaries: General government ......... Public safety .. Health and sanitation .. 8,000 11,000 12,000 16,000 4,000 120,000 80,000 15,000 90,000 12,000 4,000 7,000 8,000 Compensated absences (such as vacations and sick days) legally owed to general government workers at year-end total $13,000. These amounts will not be taken by the employees until so late in 2018 that the payment is not viewed as requiring 2017 current financial resources. The city received a piece of art this year as a donation. It is valued at $14,000. It will be used for general government purposes. There are no eligibility requirements. The city chose not to capitalize this property. The general government uses the storage shed that was acquired this year. It is being depreciated 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. For the equipment that has been ordered but not yet received, the City Council (the highest decision- making body in the government) has voted to honor the commitment when the equipment is received. a. Prepare a statement of activities and a statement of net position for governmental activities for December 31, 2017, and the year then ended. b. Prepare a statement of revenues, expenditures, and other changes in fund balances and a balance sheet for the general fund as of December 31, 2017, and the year then ended. Assume that the city applies the consumption method

Answer & Explanation Solved by verified expert

See Answer