Question

The following Information pertains to the City of Willilamson for 2017, ts first year of legal exlstence. For convenlence, 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 Franchise taxes Charges for general government services Charges for public safety services Charges for health and sanitation services Issued long-term note payable $478,888 47,888 6,988 5,488 43,988 328,888 Receivables at end of year: Property taxes (98% estimated to be collectible) 187,688 Payments Salary General government Public safety Health and sanitation 68,988 43,688 27,988 Rent: General government Public safety Health and sanitation 11,688 19,480 3,980 Maintenance General government Public safety Health and sanitation 35,880 7,808 11,188 Insurance: 7,880 16,488 28,188 26,240 6,568 282,888 126,888 23,380 186,888 General government Public safety ($4,188 still prepaid at end of year) Health and sanitation Interest on debt Principal payment on debt Storage shed Equipment Supplies (28% still held) (public safety) Investments

Answer 1

Solution:

a-1) Preparing a Statement of Activities for Governmental Activities for Decemberr 31, 2017:

City of Williamson Statement of Actvities For the Year Ended December 31, 2017
		Program Revenues			Net (Expense) Revenue and Changes in Net Assets
Functions/Programs	Expenses	Charges for Services	Operating Grants and Contributions	Capital Grants and Contributions	Governmental Activities	Business Type Activities	Total
Governmental activities
General Government	$185,900	$7,000		$15,200	($163,700)		($163,700)
Public Safety	$101,720	$3,400			($98,320)		($98,320)
Health and Sanitation	$94,000	$47,400			($46,600)		($46,600)
Interest on Debt	$23,120				($23,120)		($23,120)
Total governmental activities	$404,740	$57,800		$15,200	($331,740)		($331,740)
		General Revenues:
		Property taxes			$522,860		$522,860
		Franchise taxes			$43,800		$43,800
		Investments (gain)			$15,500		$15,500
		Total general revenues			$582,160		$582,160
		Change in net assets			$250,420		$250,420
		Net assets - beginning			$0		$0
		Net assets - Ending			$250,420		$250,420

$\emph{General Governmental }:[\$69,200 + \$20,400 + \$35,500 + \$10,300 + \$4,500] \emph{(salaries payable)} + \$14,100 \emph{(compensated absences)} + \$15,200 \emph{(art work)}+ \$16,700\emph{(depreciation on Storage Shed}: \$167,000/10 years)] = \$185,900$

$\emph{Public Safety}: [\$41,200 + \$19,200+\$7,800+\$9,800] \emph{(expired insurance)} + \$14,720 \emph{(supplies used)} + \$9,000 \emph{(salaries payable)} = \$101,720$

$\emph{Health and Sanitation}: [\$30,000 + \$4,800 + \$9,100 + \$15,500+ \$10,200] \emph{(salaries payable) }+ \$24,400 \emph{(depreciation on equipment}: \$122,000/5 years) = \$94,000$

a-2) Preparing the Statement of Net Position for Governmental Activities for December 31, 2017:

WILLIAMSON STATEMENT OF NET ASSETS December 31, 2017
	Governmental Activities	Business Type Activities	Total
Assets:
Cash and Equivalents	$68,200		$68,200
Prepaid Expenses	$4,600		$4,600
Investments	$127,500		$127,500
Receivables (Net)	$94,860		$94,860
Inventories	$4,800		$4,800
Capital Asset (Net)	$247,900		$247,900
Total Assets	$546,460		$546,460
Liabilities:
Salaries payable	$23,700		$23,700
Compensating absences Liabilities	$14,100		$14,100
Noncurrent Liabilities	$283,220		$283,220
	$321,020		$321,020
Net assets:
Invested in capital assets, net of related debt	($35,320)		($35,320)
Unrestricted (deficit)	$215,100		$215,100
Total Net Assets	$250,420		$250,420