The City of Bernard starts the year of 2017 with the following unrestricted amounts in its general fund: cash of $23,750 and investments of $81,750. In addition, it holds a small building bought on January 1, 2016, for general government purposes for $324,000 and related long-term debt of $259,200. 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	$631,000
Sales taxes	107,100
Dividend income	26,000
Charges for general government services	24,400
Charges for public safety services	12,550
Charges for public works	6,000
Charges for health and sanitation services	38,800
Charges for landfill	8,400
Grant to be used for salaries for health workers (no eligibility requirements)	28,900
Issued long-term note payable	260,000
Sold above investments	96,850
Receivables at year-end:
Property taxes ($15,100 is expected to be uncollectible)	134,000
Payments:
Salary:
General government	112,000
Public safety	105,500
Public works	86,000
Health and sanitation (all from grant)	23,800
Utilities:
General government	11,450
Public safety	16,350
Public works	17,350
Health and sanitation	5,700
Insurance:
General government	32,700
Public safety	15,500
Public works (all prepaid as of the end of the year)	7,800
Health and sanitation	5,400
Miscellaneous:
General government	12,600
Public safety	12,300
Public works	13,000
Health and sanitation	8,500
Interest on previous debt	25,920
Principal payment on previous debt	15,600
Interest on new debt	23,400
Building (public works)	246,000
Equipment (public safety)	114,000
Public works supplies (30% still held)	28,700
Investments	114,500
Ordered but not received:
Equipment	28,750
Supplies	9,600
Due at end of year:
Salaries:
General government	19,800
Public safety	19,300
Public works	6,300

On the last day of the year, the city borrowed $68,000 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 $298,500 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 years depreciation in the year of acquisition.

The investments are valued at $124,150 at year-end.

a-1. Prepare a statement of activities for governmental activities for December 31, 2017, and the year then ended.

a-2. Prepare a statement of net position for governmental activities for December 31, 2017, and the year then ended.

b-1. Prepare a statement of revenues, expenditures, and other changes in fund balances for the General Fund as of December 31, 2017, and the year then ended. Assume that the purchases method is being applied.

b-2. Prepare 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.