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The following information pertains to the City of Williamson for 2015, 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, 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 $420,000 44300 7.200 4,200 48,300 288,500 Receivables at end of year: Property taxes (90% estimated to be collectible) 103,000 Payments General government Public safety Health and sanitation 66,850 40,300 29,000 13,700 25,100 3,300 General govemment Public safety Health and sanitation Maintenance General govemment Public safety Health and sanitation 21800 6,600 11.400 Insurance 8,100 14,700 18,900 23,080 5,770 161,000 127,500 18,200 101,000 Generall govermment Public safety ($3,000 still prepaid at end of year) Health and sanitation Interest on debt Principal payment on debt Storage shed Equipment Supplies (20% still held) (public safety) Investments Ordered but not received: Equipment 16,000 Due in one month at end of year Salaries: General government Public safety Health and sanitation 5.400 7,800 10,200 Compensated absences legally owed to general government workers at year-end total S21,300, These amounts will not be taken by the employees until late in the year 2016. The city received a piece of art this year as a donation. It is valued at $15,000. It will be used for general govenment 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 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 $120,200 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 a-1 Prepare a statement of activities for governmental activities for December 31, 2015
Expert Answer
| a-1 | ||||||
| CITY OF WILLIAMSON | ||||||
| STATEMENT OF ACTIVITIES | ||||||
| For the year ended 31st Dec 2015 | ||||||
| Programe Revenues | Net (Expense) Revenue and Changes in Net Assets | |||||
| Functions/Programs | Expenses | Charges for Services | Operating Grants and Services | Government Activities | Business-type Activities | Total |
| Primary Government: | ||||||
| Governmental activities | ||||||
| General Governmental | $168,250 | $7,200 | $15,000 | -$146,050 | -$146,050 | |
| Public Safety | $106,060 | $4,200 | -$101,860 | -$101,860 | ||
| Health and Sanitation | $98,300 | $48,300 | -$50,000 | -$50,000 | ||
| Interest on debt | $23,080 | -$23,080 | -$23,080 | |||
| Total Governmental activities | $395,690 | $59,700 | $15,000 | -$320,990 | $0 | -$320,990 |
| General Revenues: | ||||||
| Property taxes = $420,000 + 90% x 103000 | $512,700 | $512,700 | ||||
| Franchise taxes | $44,300 | $44,300 | ||||
| Investments (Gain) = $120,200 – $101,000 | $19,200 | $19,200 | ||||
| Total general revenues,transfers, and special items | $576,200 | $576,200 | ||||
| Change in net assets | $255,210 | $255,210 | ||||
| Net assets – beginning | $0 | $0 | ||||
| Net assets – ending | $255,210 | $255,210 | ||||
| Calculation | ||||||
| General Governmental | ||||||
| Salary | $66,850 | |||||
| Rent | $13,700 | |||||
| Maintenance | $21,800 | |||||
| Insurance | $8,100 | |||||
| Salaris payable | $5,400 | |||||
| compensated absences | $21,300 | |||||
| art work | $15,000 | |||||
| Depreciation on building (Storage Shed): $161,000/10 years | $16,100 | |||||
| Total | $168,250 | |||||
| Public Safety | ||||||
| Salary | $40,300 | |||||
| Rent | $25,100 | |||||
| Maintenance | $6,600 | |||||
| Insurance = 14700 -3000 | $11,700 | |||||
| supplies used 18200 x (1-20%) | $14,560 | |||||
| Salaris payable = | $7,800 | |||||
| Total | $106,060 | |||||
| Health and Sanitation | ||||||
| Salary | $29,000 | |||||
| Rent | $3,300 | |||||
| Maintenance | $11,400 | |||||
| Insurance | $18,900 | |||||
| Salaris payable | $10,200 | |||||
| Depreciation on building (equipment): $127,500/5 years | $25,500 | |||||
| Total | $98,300 | |||||
| CITY OF WILLIAMSON | |||
| STATEMENT OF POSITION | |||
| For the year ended 31st Dec 2015 | |||
| Government Activities | Business-type Activities | Total | |
| ASSETS: | |||
| Cash and cash equivalents = 59700 +16000 | $116,200 | $116,200 | |
| Prepaid expenses | $3,000 | $3,000 | |
| Investments | $120,200 | $120,200 | |
| Receivables (net) 103000 x 90% | $92,700 | $92,700 | |
| Inventories $18200 x 20% | $3,640 | $3,640 | |
| Capital Assets net = ($161000 – 16100)+127500-25500 | $246,900 | $246,900 | |
| TOTAL ASSETS | $582,640 | $582,640 | |
| LIABILITIES | |||
| Salaries payable | $23,400 | $23,400 | |
| Compensating absences Liabilities | $21,300 | $21,300 | |
| Noncurrent Liabilities ($288500 – 5770) | $282,730 | $282,730 | |
| TOTAL LIABILITIES | $327,430 | $327,430 | |
| NET POSITIONS | |||
| Invested in capital assets,net of related debt (16100+25500+5770) | -$47,370 | -$47,370 | |
| Unrestricted (deficit) | $207,840 | $207,840 | |
| Total Net Assets | $255,210 | $255,210 |
