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 $422,000 48,500 8,500 3,200 42,400 280.500 92,500 69,850 46,200 30,700 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 Receivables at end of year: Property taxes (9e% estimated to be collectible) Payments: Salary: General government Public safety Health and sanitation Rent: General government Public safety Health and sanitation Maintenance: General government Public safety Health and sanitation Insurance: General government Public safety (53,789 still prepaid at end of year) Health and sanitation Interest on debt Principal payment on debt Storage shed Equipment 12,200 20, 180 3,988 27,800 6,600 10,000 9,800 13,100 14,700 22,440 5,610 158,888 122,580

Answer 1

Part A-1

CITY OF WILLIAMSON

STATEMENT OF ACTIVITIES

For 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 Governmental	183550	8500		20500	(154550)		(154550)
Public Safety	106700	3200			(103500)		(103500)
Health and Sanitation	94000	42400			(51600)		(51600)
Interest on debt	22440				(22440)		(22440)
Total Governmental activities	406690	54100		20500	332090		332090
		General Revenues:
		Property taxes			505250
		Franchise taxes			48500
		Investments (Gain)			22500
		Total general revenues, transfers, and special items:			576250
		Change in net assets			244160
		Net assets – beginning			0
		Net assets – ending			244160

General Governmental = 69850+12200+27800+9800+6900+20700+20500+ 15800 (158000/10) = 183550

Public Safety = 46200+20100+6600+(13100-3700)+(18500*(1-20%))+9600 = 106700

Health and Sanitation = 30700+3900+10000+14700+10200+(122500/5) =94000

Property taxes = 422000+(92500*90%) = 505250

Investments (Gain) = 108000-130500 = 22500

               

Part A-2

CITY OF WILLIAMSON

STATEMENT OF NET ASSETS

December 31, 2017

Primary Government                         

	Governmental Activities	Business-type Activities	Total
Assets
Cash and cash Equivalents	105100		105100
Prepaid expenses	3700		3700
Investments	130500		130500
Receivables (net) (92500*90%)	83250		83250
Inventories (18500*20%)	3700		3700
Capital assets (net) (158000-15800)+(122500-24500)	240200		240200
Total Assets	566450		566450
Liabilities
Salaries payable (6900+9600+10200)	26700		26700
Compensating absences Liabilities	20700		20700
Noncurrent Liabilities (280500-5610)	274890		274890
	322290		322290
Net assets (274890-240200)
Invested in capital assets, net of related debt	(34690)		(34690)
Unrestricted (deficit)	278850		278850
Total Net Assets	244160		244160

               

Part B-1

CITY OF WILLIAMSON

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

Governmental Funds

For Year Ended December 31, 2017

Revenues:	General:	Total government funds
Property taxes	505250	505250
Franchise taxes	48500	48500
Charges for Services	54100	54100
Investments (Gain)	22500	22500
	630350	630350
Expenditures:
Current:
General Governmental	126550	126550
Public Safety	106700	106700
Health and Sanitation	69500	69500
Debt Service:
Principal payment on debt	5610	5610
Interest on debt	22440	22440
Capital Outlay	280500	280500
Total expenditures	611300	611300
Excess (Deficiency) of revenues over expenses)	19050	19050
Other Financing Sources:
Proceeds from long-term note	280500	280500
Total other uses and sources
Net Changes in fund balance
Fund Balances (beginning)	0	0
Fund Balances (ending)	299550	299550

Part B-2

CITY OF WILLIAMSON

BALANCE SHEET

Governmental Funds

December 31, 2017

	General:	Total government funds
Assets
Cash and cash Equivalents	105100	105100
Prepaid expenses	3700	3700
Investments	130500	130500
Receivables (net)	83250	83250
Inventories	3700	3700
Total Assets	326250	326250
Liabilities
Salaries payable	26700	26700
Fund Balances
- Reserved for encumbrances	14500	14500
- Reserved for inventories	3700	3700
- Reserved for prepaid expenses	3700	3700
- Unreserved	277650	277650
Total Fund Balances	299550	299550
Total Liabilities and Fund Balances	326250	326250