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Problem $17-43($Algo$)($LO $17-2,17-3,17-9,17-11)$

The City of Bernard starts the year of $2020$ with the following unrestricted amounts in its general fund: cash of $$28,500$ and investments of $$70,500.$ In addition, it holds a small building bought on January $1,2019,$ for general government purposes for $$338,000$ and a related long$-$term debt of $$270,400.$ The building is depreciated on the straight$-$line method over $10$ years. The annual interest rate on the debt is $10$ percent. The general fund has four separate functions: general government, public safety, public works, and health and sanitation. Other information includes the following:

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$$Receipts:$$Property taxes$$567,000$Sales taxes$108,100$Dividend income$28,000$Charges for general government services$24,800$Charges for public safety services$12,950$Charges for public works$6,300$Charges for health and sanitation services$33,300$Charges for landfill$10,000$Grant to be used for salaries for health workers $($no eligibility requirements$)26,800$Issued long$-$term note payable$254,000$Sold investments $($mentioned above$)87,450$Receivables at year$-$end:$$Property taxes $($$$15,400$ is expected to be uncollectible$)179,500$Payments:$$Salary:$$General government$119,000$Public safety$105,250$Public works$73,500$Health and sanitation $($all from grant$)22,600$Utilities:$$General government$10,150$Public safety$18,250$Public works$15,400$Health and sanitation$5,100$Insurance:$$General government$29,900$Public safety$15,000$Public works $($all prepaid as of the end of the year$)6,000$Health and sanitation$4,500$Miscellaneous:$$General government$18,100$Public safety$13,400$Public works$10,800$Health and sanitation$9,750$Interest on previous debt$27,040$Principal payment on previous debt$11,100$Interest on new debt$22,860$Building $($public works$)264,000$Equipment $($public safety$)90,000$Public works supplies $(30\%$ still held$)24,000$Investments$150,000$Ordered but not received:$$Equipment$39,250$Supplies$10,450$Due at end of year:$$Salaries:$$General government$14,000$Public safety$21,000$Public works$7,200$

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On the last day of the year, the city borrows $$69,000$ 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.

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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 $$270,000$ 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 $15$ percent filled.

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For the equipment and supplies that were ordered but not yet received, the City Council $($the highest decision$-$making body in the government$)$ has voted to honor the commitment when the items arrive.

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The new building is depreciated over $20$ years using the straight$-$line method and no residual value. Depreciation of the equipment is similar except that its life is only $10$ years. Assume the city records a full year$$s depreciation in the year of acquisition.

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The investments have a market value of $$159,300$ at year$-$end.

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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 the purchases method is applied.

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 the purchases method is applied.

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