Question

35. The following information pertains to the City of Williamson for 2017, its first year of legal exis- tence. For convenience, assume that all transactions are for the general fund, which has three sepa- rate functions: general government, public safety, and health and sanitation. $320,000 42.000 5,000 3,000 42,000 200,000 ...... 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 (90% estimated to be collectible)......... Payments: Salary: General government... Public safety ............ Health and sanitation 90,000 66,000 39,000 22.000 (continued)

Answer 1

City of Williamson Statement of Activities For the Year ended 31.12.2017 Operating Capital Grants and Grants and Contributions Contributions Governmental Business-type Charges for Functions/Programs Expenses Services Activities Activities Total Governmental activities General Government 149000 5000 Public Safety 90000 3000 Health and Sanitation 70000 42000 Interest on Debt 16000 Total governmental activities 325000 50000 14000 - 130000 -87000 -28000 - 16000 -261000 14000 General Revenues: Property taxes Franchise taxes Investments (gain) Total general revenues Change in net assets Net assets-beginning Net assets-ending 401000 42000 13000 456000 195000 195000 General Governmental ($66,000 + 11,000 + 21,000 + 8,000 +4,000 (salaries payable) + 13,000 (compensated absences) + 14,000 (art work) + 12,000 (depreciation on building: $120,000/10 years)] = $149,000 Public Safety ($39,000 + 18,000 + 5,000 + 9,000 (expired insurance) +12,000 (supplies used) + 7,000 (salaries payable)] = $90,000 Health and Sanitation ($22,000 + 3,000 + 9,000 + 12,000 +8,000 (salaries payable) + 16,000 (depreciation on equipment: $80,000/5 years)] = $70,000

Statement of Net Assets As at 31.12.2017 Governmental Business Type Activities Activities Total Assets Cash and cash equivalents Prepaid expenses Investments Receivables (net) Inventories Capital assets (net) Total assets 62000 2000 103000 81000 3000 172000 423000 62000 2000 103000 81000 3000 172000 423000 Liabilities Salaries payable Compensating absences liabilities Noncurrent liabilities 19000 13000 19000 13000 196000 228000 196000 228000 Net assets Invested in capital assets, net of related debt Unrestricted (deficit) Total net assets -24000 219000 195000 - 24000 219000 195000

Statement of Revenues, Expenditures and Changes in Fund Balances For Year Ended December 31, 2017 Revenues: General Fund Total Government Funds Property Taxes 401000 401000 Franchise Taxes 42000 42000 Charges for Services 50000 50000 Investments (Gain) 13000 13000 506000 506000 Expenditures: General Government 110000 110000 Public Safety 90000 90000 Health and Sanitation 54000 54000 Debt Service: Principal Payment on Debt Interest on Debt 4000 4000 16000 16000 200000 200000 474000 474000 Capital outlay Total expenditures Excess (Deficiency) of Revenues over Expenses Other Financing Sources: Proceeds from Long-term Note Total Other Sources 32000 32000 200000 200000 200000 200000 232000 232000 Net Changes in Fund Balance Fund Balances (Beginning) Fund Balances (Ending) 232000 232000

Balance sheet As at 31.12.2017 Total Governmental Funds General Fund 62000 2000 Assets Cash and cash equivalents Prepaid expenses Investments Receivables, net Inventories Total assets 103000 62000 2000 103000 81000 3000 251000 81000 3000 251000 Liabilities Salaries payable Total Liabilities 19000 19000 19000 19000 Fund Balances Nonspendable Committed for Equipment Unassigned Total Fund Balances 5000 12000 215000 232000 5000 12000 215000 232000 Total Liabilities and Fund Balances 251000 251000