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Problem $17-42($Algo$)($LO $17-6,17-8,17-10)$

The following information pertains to the 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 government, public safety, and health and sanitation.

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$$Receipts:$$Property taxes$$406,000$Franchise taxes$51,700$Charges for general government services$8,000$Charges for public safety services$3,700$Charges for health and sanitation services$50,400$Issued long$-$term note payable$273,000$Receivables at end of year:$$Property taxes $(90\%$ estimated to be collectible$)107,400$Payments:$$Salary:$$General government$67,650$Public safety$46,300$Health and sanitation$22,600$Rent:$$General government$13,000$Public safety$24,500$Health and sanitation$3,300$Maintenance:$$General government$22,500$Public safety$6,900$Health and sanitation$9,600$Insurance:$$General government$9,600$Public safety $($$$2,400$ still prepaid at end of year$)13,500$Health and sanitation$19,500$Interest on debt$21,840$Principal payment on debt$5,460$Storage shed$190,000$Equipment$83,000$Supplies $(20\%$ still held$)($public safety$)23,800$Investments$104,000$Ordered but not received:$$Equipment$15,000$Liabilities, all of which are due in one month at end of year:$$Salaries:$$General government$6,300$Public safety$8,700$Health and sanitation$10,500$

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Compensated absences $($such as vacations and sick days$)$ legally owed to general government workers at year$-$end total $$19,700.$ These amounts will not be taken by the employees until so late in $2021$ that the payment is not viewed as requiring $2020$ current financial resources.

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The city received a piece of art this year as a donation. It is valued at $$21,500.$ The city plans to use it for general government purposes. The gift has no eligibility requirements. The city chose not to capitalize this property.

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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.

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The investments are valued at $$126,900$ at the end of the year.

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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.

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a$-1.$ Prepare a statement of activities for governmental activities in government$-$wide financial statements for December $31,2020,$ and the year then ended.

a$-2.$ Prepare a statement of net position for governmental activities in government$-$wide financial statements for December $31,2020,$ and the year then ended.

b$-1.$ Prepare a statement of revenues, expenditures, and other changes in fund balances for the general fund in fund financial statements as of December $31,2020,$ and the year then ended. Assume that the city applies the consumption method.

b$-2.$ Prepare a balance sheet for the general fund in fund financial statements as of December $31,2020,$ and the year then ended. Assume that the city applies the consumption method. Req A$1$

Req A$2$

Req B$1$

Req B$2$

Prepare a statement of activities for governmental activities in government$-$wide financial statements for December $31,2020,$ and the year then ended.

CITY OF WILLIAMSON

Statement of Activities

For Year Ended December $31,2020$

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