Reference no: EM132602847
Question - The following information pertains to the City of Williamson for 2017, 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.
Receipts: Property taxes $414,000
Franchise taxes 43,000
Charges for general government services 6,200
Charges for public safety services 4,300
Charges for health and sanitation services 47,800
Issued long-term note payable 314,000
Receivables at end of year: Property taxes (90% estimated to be collectible) 100,800
Payments: Salary: General government 60,200
Public safety 32,800
Health and sanitation 20,200
Rent: General government 16,300
Public safety 21,000
Health and sanitation 3,900
Maintenance: General government 27,600
Public safety 5,700
Health and sanitation 11,500
Insurance: General government 8,400
Public safety ($3,800 still prepaid at end of year) 15,300
Health and sanitation 15,700
Interest on debt 25,120
Principal payment on debt 6,280
Storage shed 194,000
Equipment 120,000
Supplies (20% still held) (public safety) 16,600
Investments 92,000
Ordered but not received: Equipment 16,500
Due in one month at end of year:
Salaries: General government 4,500
Public safety 8,400
Health and sanitation 9300
Compensated absences (such as vacations and sick days) are legally owed to general government workers at year-end total $19,500. 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 $23,900. 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 $109,900 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.
1. Prepare statement of activities for governmental activities for December 31, 2017.
2. Prepare statement of net position for governmental activities for December 31, 2017.
3. Prepare statement of revenues, expenditures, and other changes in fund balances for the general fund as of December 31, 2017. Assume that the city applies the consumption method.
4. Prepare balance sheet for the general fund as of December 31, 2017. Assume that the city applies the consumption method.