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    The City of Bernard Starts The Year of 2017 With

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    Amit Pandey
    The City of Bernard starts 2017 with $20,000 in cash and $70,000 in investments. It also owns a building worth $300,000 with $240,000 in long-term debt. The city collects property, sales, and other taxes and fees totaling over $700,000. It spends over $700,000 on salaries, utilities, supplies, and other expenses. The city also buys a truck for $64,000 and takes on additional long-term debt. Financial statements must be prepared to show the city's financial activities and position.

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    The City of Bernard Starts The Year of 2017 With

    Uploaded by

    Amit Pandey
    35 views4 pages
    The City of Bernard starts 2017 with $20,000 in cash and $70,000 in investments. It also owns a building worth $300,000 with $240,000 in long-term debt. The city collects property, sales, and other taxes and fees totaling over $700,000. It spends over $700,000 on salaries, utilities, supplies, and other expenses. The city also buys a truck for $64,000 and takes on additional long-term debt. Financial statements must be prepared to show the city's financial activities and position.

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    The City of Bernard Starts the Year of 2017 With

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    The City of Bernard starts 2017 with $20,000 in cash and $70,000 in investments. It also owns a building worth $300,000 with $240,000 in long-term debt. The city collects property, sales, and other taxes and fees totaling over $700,000. It spends over $700,000 on salaries, utilities, supplies, and other expenses. The city also buys a truck for $64,000 and takes on additional long-term debt. Financial statements must be prepared to show the city's financial activities and position.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    35 views4 pages

    The City of Bernard Starts The Year of 2017 With

    Uploaded by

    Amit Pandey
    The City of Bernard starts 2017 with $20,000 in cash and $70,000 in investments. It also owns a building worth $300,000 with $240,000 in long-term debt. The city collects property, sales, and other taxes and fees totaling over $700,000. It spends over $700,000 on salaries, utilities, supplies, and other expenses. The city also buys a truck for $64,000 and takes on additional long-term debt. Financial statements must be prepared to show the city's financial activities and position.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Solved: The City of Bernard starts the year of 2017 with

    The City of Bernard starts the year of 2017 with the following unrestricted amounts in its general
    fund: cash of $20,000 and investments of $70,000. In addition, it holds a small building bought
    on January 1, 2016, for general government purposes for $300,000 and related long-term debt
    of $240,000. The building is being depreciated on the straight-line method over 10 years. The
    interest rate 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:

    Receipts:

    Property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $510,000

    Sales taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,000

    Dividend income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000

    Charges for general government services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000

    Charges for public safety services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000

    Charges for public works. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000

    Charges for health and sanitation services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,000

    Charges for landfill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000

    Grant to be used for salaries for health workers

    (no eligibility requirements). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000

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

    Sold above investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,000

    Receivables at year-end:

    Property taxes ($10,000 is expected to be uncollectible). . . . . . . . . . . . . . . . . . . . 130,000

    Payments:

    Salary:

    General government. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000

    Reach out to [email protected] for enquiry.


    Public safety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,000

    Public works. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,000

    Health and sanitation (all from grant). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000

    Utilities:

    General government. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000

    Public safety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,000

    Public works. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,000

    Health and sanitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000

    Insurance:

    General government. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000

    Public safety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000

    Public works (all prepaid as of the end of the year) . . . . . . . . . . . . . . . . . . . . . . . 6,000

    Health and sanitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000

    Miscellaneous:

    General government. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000

    Public safety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000

    Public works. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000

    Health and sanitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000

    Interest on previous debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000

    Principal payment on previous debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000

    Interest on new debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000

    Building (public works). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,000

    Equipment (public safety). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000

    Public works supplies (30% still held). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20,000

    Reach out to [email protected] for enquiry.


    Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111,000

    Ordered but not received:

    Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000

    Supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000

    Due at end of year:

    Salaries:

    General government. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000

    Public safety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000

    Public works. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000

    On the last day of the year, the city borrowed $64,000 from a local bank and used that money to
    buy a truck. The first payment on the loan (plus interest) will be made at the end of the next
    year.

    The city started a landfill this year that it is recording within its general fund. It is included as a
    public works function. Closure costs today would be $260,000 although the landfill is not
    expected to be filled for nine more years. The city has incurred no costs to date although the
    landfill is now 15 percent filled.

    For the equipment and supplies that have 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 items are received.

    The new building is being depreciated over 20 years using the straight-line method and no
    salvage value, whereas 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.

    The investments are valued at $116,000 at year-end.

    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 purchases method is being applied.

    The City of Bernard starts the year of 2017 with


    Reach out to [email protected] for enquiry.
    ANSWER
    https://solvedquest.com/the-city-of-bernard-starts-the-year-of-2017-with/

    Reach out to [email protected] for enquiry.


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