on the last day of the year. The first payment will be made at the end of the next year.

Total
payments will amount to $90,000 but have a present value of $64,000.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 $260,000 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 year's depreciation in
the year of acquisition.The investments are valued at $116,000 at year-end.a. Prepare a
statement of activities and a statement of net assets for governmental activities for December
31, 2010, and the year then ended.b. Prepare a statement of revenues, expenditures, and
changes in fund balances and a balance sheet for the General Fund as of December 31, 2010,
and the year then ended. Assume that the purchases method is being applied.View Solution:
The City of Bernard starts the year of 2010 with
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