Governmental and Nonprofit Accounting (11th Edition)
11th Edition
ISBN: 9780133799569
Author: Robert J. Freeman, Craig D. Shoulders, Dwayne N. McSwain, Robert B. Scott
Publisher: PEARSON
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Textbook Question
Chapter 4, Problem 10P
Fund Balance Reporting
(Fund Balance Reporting) The General Fund of Dilligan County, Virginia, has total fund balance of $17,000,000 at June 30, 20X0, the end of its fiscal year. Additional information is provided below.
- 1. The county has restricted General Fund assets that have been provided by local donors for the upkeep and improvement of the Professor Lake and Skipper Recreation Area in Lakatos Island Village, the largest community in the county. The net balance of these donated resources at June 30 was $300,000, including $20,000 of materials purchased for the restricted purposes.
- 2. Additional General Fund inventory of $65,000 on hand at June 30 is available for any General Fund purpose.
- 3. Encumbrances outstanding at year end were as follows:
- Related to restricted resources—$32,000
- Related to committed resources—$70,000
- Related to assigned resources—$600,000
- Related to resources not restricted, committed, or assigned—$1,000,000
- 4. Prepaid insurance in the General Fund was $18,000.
- 5. A long-term advance made from unassigned resources of the Dilligan County General Fund to its Desert Isle Golf Course Enterprise Fund of $150,000 was outstanding at June 30.
- 6. Assignment authority was delegated by the commissioners to County Chief Financial Officer Rich Howell. Mr. Howell has assigned a total of $3,200,000 to three specific purposes—$1,000,000 for prisoner rehabilitation programs, $800,000 for adult literacy programs in the community, and $1,400,000 for the future replacement of the county’s computer information system.
- 7. Long-term investments of unassigned resources at June 30 were $400,000.
- 8. The county commissioners took formal action to commit $750,000 for a major economic development campaign. A sum of $100,000 of accounts payable were related to the economic development efforts as of June 30, 20X0.
Required Prepare the fund balance section of the General Fund balance sheet of Dilligan County as of June 30, 20X0.
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[The following information applies to the questions displayed below.]The Township of Thomasville’s General Fund has the following net resources at year end:
$69,000 of prepaid insurance
$410,000 rainy day fund approved by the township governing board with specific conditions for its use
$1,800 of supplies inventory
$60,000 state grant for snow removal
$150,000 contractual obligations for the purchase of equipment
Outstanding encumbrance of $105,000 for the purchase of furniture & fixtures (assume no contractual obligation)
Total Fund Balance is $1,010,500
What would be the total Nonspendable fund balance?
Multiple Choice
$70,800
$150,000
$69,000
$410,500
What would be the total Restricted fund balance?
Multiple Choice
$60,000
$150,000
$479,000
$410,000
The City of Fox is evaluating which of its funds it will present as a major fund in its fund financial statements on December 31, Year 1. The city presents the following partial listing of asset data at December 31, Year 1:
Total Governmental Fund Type Assets $ 3,000,000
Total Enterprise Fund Assets 2,000,000
General Fund Assets 280,000
Community Development Special Revenue Fund 290,000
Faberville River Bridge Capital Project Fund 100,000
Faberville Water & Sewer Utility Fund 1,800,000
Faberville Landfill 200,000
Based purely on assets, how many funds should be displayed as major funds?
A.) Four
B.) Five
C.) TWO
D.) Three
The County of Maxnell decides to create a waste management department and offer its services to the public for a fee. As a result.
county officlals plan to account for this activity as an enterprise fund. Assume the Information is gathered so that the county can
prepare fund financial statements. Only entries for the waste management department are required here:
January 1 Receive unrestricted funds of $162,800 from the general fund as permanent financing.
Febrauary 1 Borrow an additional $120,e0 from a local bank at a 12 percent annual interest rate.
March 1 Order a truck at an expected cost of $114, 5ee.
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May 1 Receive a $23,800 cash grant from the state to help supplement the pay of the department workers. According to the
grant, the money must be used for that purpose.
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Chapter 4 Solutions
Governmental and Nonprofit Accounting (11th Edition)
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