aa2e_hal_sm_ch09.docx

Solution Manual Chapter 9 – Government Accounting: Fund-Based Financial Statements 1. Some of the questions we have about the financial affairs of a government are the following: Is it efficient in delivering the services that we expect? Is it financially solvent? Can we account for all of the funds that have been entrusted it? The GASB identifies the following three groups as the primary users of governmental financial statements in its Concept Statement 1: citizens, regulators and investors. Further, it confirms that these financial reports are used, primarily, “to compare actual financial results with the legally adopted budget; to assess financial condition and results of operations; to assist in determining compliance with finance-related laws, rules, and regulations; and to assist in evaluating efficiency and effectiveness” (GASB CS1, Summary).

2. The cornerstone of governmental financial reporting is the concept of accountability which the GASB defines as follows: “Governmental accountability is based on the belief that the citizenry has a ‘right to know,’ a right to receive openly declared facts that may lead to public debate by the citizens and their elected representatives. Financial reporting plays a major role in fulfilling government's duty to be publicly accountable in a democratic society” (GASB CS1, ¶56).

3. GASB 34 requires governments to issue Fund financial statements and Government-Wide financial statements. Fund financial statements are prepared using a modified accrual basis of accounting and focus on the sources, uses and balances of the net assets that have been entrusted to governmental officials. A significant use of fund financial statements is to ensure that the assets entrusted to the government by its citizens have been used as they have directed and that the government has operated within the budget set for it by its citizenry. Government-Wide financial statements provide information about the government on an accrual basis and are similar to the types of financial reports we have used to describe the financial activities of businesses. These statements allow users to better assess the financial condition of the government in their investment decisions.

4. The Fund accounting system organizes the government into discrete categories, called Funds, each of which is accounted for separately. The primary purpose of fund accounting is to segregate the accounting for these activities so that they can be monitored. Fund accounting is designed to provide the control mechanism necessary to ensure that cash is spent as appropriated in the budget.

Solutions Manual, Chapter 9

©Cambridge Business Publishers, 2014 9-1

5. Fund accounting focuses primarily on cash inflows and outflows and the current year’s budget. Long-term assets (like infrastructure) and long-term liabilities (like bonds, leases and other long-term liabilities) are not reported on the Fund balance sheet. The absence of this information makes it difficult to effectively analyze the financial condition of the government. In contrast, Government-Wide financial statements are prepared under accrual accounting and, as a result, include these long-term assets and liabilities. Consequently, we are better able to answer the first two questions we pose above about the governmental unit we are interested in: Is it efficient in delivering the services that we expect, and is it financially solvent?

6. The GASB confirms the importance of a budget in its first Concept Statement: “[A budget] is a form of control usually having the force of law. A legally adopted budget provides both authorizations of and limitations on amounts that may be spent for particular purposes. Because budgetary authorizations result from competition for scarce resources and budgetary limitations generally cannot be exceeded without due process, the governmental entity needs to demonstrate that it is accountable from both the authorization and the limitation perspectives [emphasis the GASB]” (GASB CS 1, ¶19c).

7. An appropriation is a sum of money that has been set aside for a specific use.

8. The three types of funds are Governmental Funds, Proprietary Funds, and Fiduciary Funds. Governmental Funds include the General Fund, Special Revenue Funds, Capital Projects Funds, Debt Service Funds, and Permanent Funds. Proprietary Funds include Enterprise Funds and Internal Service Funds. Fiduciary Funds include Pension and Other Employee Benefit Funds, Investment Trust Funds, Private Purpose Trust Funds, and Agency Funds.

9. There is only one requirement relating to the establishment of funds: there should be only one General Fund (GASB Codification 1300.116). Aside from that restriction, governmental units should establish and maintain those funds that are required by law and necessary for sound financial administration. Only the minimum number of funds consistent with legal and operating requirements should be established, however, because unnecessary funds result in inflexibility, undue complexity, and inefficient financial administration (NCGAS 1,¶ 29).


Advanced Accounting by Halsey & Hopkins, 2nd Edition

10. Revenues and expenditures are recognized on the current financial resources measurement focus and the modified accrual basis of accounting (NCGAS 1, ¶57). Current financial resources measurement focus mean resources that can be consumed in the near future. For assets, this includes cash, investments, and receivables (PPE is not included in fund financial statements as it is consumed over a longer period of time). For liabilities, this includes those obligations that would normally be liquidated with expendable available financial resources, such as accounts payable and accruals. These liabilities will, in the determination of management, require the use of current resources for payment. Long-term liabilities are not reported in fund financial statements because their liquidation will require the use of future financial resources. The modified accrual basis of accounting refers to when the transaction is recognized. Revenues are recognized in the accounting period in which they become susceptible to accrual, that is, when they become both measurable and available to finance expenditures. "Available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures should be recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt and on special assessment indebtedness secured by interest-bearing special assessment levies, which should be recognized when due.

11. The property taxes due a government, net of estimated uncollectibles, typically can be determined and recorded in the accounts when levied. Property taxes levied for the current fiscal year are "available" and should be recognized as revenue, even though collectible in the period subsequent to levy, if (1) their ultimate collectibility is reasonably assured, net of reasonably estimated losses, and (2) they are collectible soon enough in the subsequent period to finance current-period expenditures (NCGAS 1, ¶57). Collectible “soon enough in the subsequent period to finance current period expenditures” is interpreted to mean 60 days (NCGAI 3, ¶8). The 60-day rule implies that governments that expect receivables to be collected after 60 days should defer the revenue until collected.

12. Local governments often receive aid from the state or federal government in the form of grants and other subsidies. These grants often contain conditions such as the required characteristics of recipients, time requirements, the use of funds only as a reimbursement, and contingencies such as those related to a specified action of the recipient. Recipients should recognize receivables (or a decrease in liabilities) and revenues (net of estimated uncollectible amounts), when all applicable eligibility requirements, including time requirements, are met. Resources transmitted before the eligibility requirements are met should be reported as deferred revenues by recipients. (GASB Codification N50.117-.118)



13. Proprietary and Fiduciary Fund revenues and expenses should be recognized on the accrual basis. Revenues should be recognized in the accounting period in which they are earned and become measurable; expenses should be recognized in the period incurred, if measurable.

14. The reason for this entry is so that government administrators can regularly monitor actual vs. budget variances in order to make corrections as needed. This monitoring process is critical since, unlike businesses, governments can only change revenues through the legislative process and cannot move cash from one fund to another to make up for shortfalls. Instead, managers must take elaborate steps to insure that expenditures not exceed appropriations.

15. An encumbrance is a purchase order or other contractual commitment that requires the payment of funds in the future relating to an existing appropriation. Accountability is the cornerstone of financial reporting in government. Accountability requires governments to answer to the citizenry—to justify the raising of public resources and the purposes for which they are used. The GASB summarized the meaning of accountability and its applicability to financial reporting in the following statement in its Concepts Statement #1: “The Board believes that, at a minimum, demonstrating accountability through financial reporting includes providing information to assist in evaluating whether the government was operated within the legal constraints imposed by the citizenry” (GASB CS 1, ¶58). It is this belief that underlies the use of encumbrance accounting.

16. An expenditure is the using up of an appropriation.

17. The remaining authority to issue further appropriations of approved expenditures is given by the following formula: Remaining authority

=

BUDGETARY APPROPRIATIONS

ENCUMBRANCES + Expenditures outstanding to date

At any time, therefore, government managers can assess their authority to issue additional appropriations.



18. The four types of interfund activities are as follows: 

Interfund loans — amounts provided with a requirement for repayment.



Interfund services provided and used — sales and purchases of goods and services between funds for a price approximating their external exchange value.



Interfund transfers — flows of assets (such as cash or goods) without equivalent flows of assets in return and without a requirement for repayment.



Interfund reimbursements — repayments from the funds responsible for particular expenditures or expenses to the funds that initially paid for them.

19. The reporting government’s main operating fund (i.e., the general fund) should always be reported as a major fund. Other funds are designated as major funds, and reported in separate columns in the fund financial statements, if (GASB 34, ¶76), a. Total assets, liabilities, revenues, or expenditures/expenses are at least 10% of the corresponding total for all funds of the fund’s type (i.e., a specific enterprise fund whose total assets are greater than 10% of the total assets of all enterprise funds), and b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5% of the corresponding total for all governmental and enterprise funds combined (i.e., a governmental fund whose total assets are greater than 5% of the total assets for all governmental and enterprise funds combined).

20. The required financial statements for the three types of Funds are as follows: 

Governmental funds o Balance sheet o Statement of revenues, expenditures, and changes in fund balances



Proprietary funds o Statement of net assets o Statement of revenues, expenses, and changes in fund net assets o Statement of cash flows



Fiduciary funds (and component units that are fiduciary in nature) o Statement of fiduciary net assets o Statement of changes in fiduciary net assets



21. Answer: B 22. Answer: C 23. Answer: D 24. Answer: C 25. Answer: D 26. Answer: D 27. Answer: D 28. Answer: B 29. Answer: B 30. Answer: D

31. The journal entry to record the budget is as follows: ESTIMATED REVENUES ESTIMATED OTHER FINANCING SOURCES

APPROPRIATIONS ESTIMATED OTHER BUDGETARY FUND FINANCIN USES (to record the budget for the year) BALANCE


50,000,000 10,000,000 30,000,000 25,000,000 5,000,000


32. The journal entry to record the issuance of the purchase order for the truck and its ultimate payment at delivery are as follows: a. ENCUMBRANCES

47,000 BUDGETARY FUND BALANCE – RESERVED FOR ENCUMBRANCES

47,000

(to record issuance of purchase order for a truck)

b. BUDGETARY FUND BALANCE – RESERVED FOR ENCUMBRANCES ENCUMBRANCES

47,000

c. Expenditures

51,000

47,000

Cash or Vouchers payable

51,000

(to reverse the previous encumbrance entry and record purchase of the truck)

33. The journal entry to close the encumbrance account at year-end and to reestablish the encumbrance in the succeeding year are as follows (assuming budgetary authority carries over to the succeeding year): To close the encumbrance account. a. BUDGETARY FUND BALANCE – RESERVED FOR ENCUMBRANCES

75,000 ENCUMBRANCES

b. Fund balance – unassigned

75,000 75,000

Fund balance – assigned

75,000

(to reverse the budgetary encumbrance and reserve the fund balance for the outstanding encumbrance)

To reestablish the encumbrance in the succeeding year. c. Fund balance - assigned

75,000 Fund balance – assigned (prior year)

75,000

(to date the reservation of the fund balance)



34. The journal entry to close the encumbrance account at year-end and to re-establish the encumbrance in the succeeding year are as follows (assuming budgetary authority does not carry over to the succeeding year): To close the encumbrance account. a. BUDGETARY FUND BALANCE – RESERVED FOR ENCUMBRANCES

45,000 ENCUMBRANCES

45,000

b. Fund balance – unassigned

45,000 Fund balance – assigned

45,000

(to reverse the budgetary encumbrance and reserve the fund balance for the outstanding encumbrance)

To reestablish budgetary authority for the encumbrance in the succeeding year. c. Fund balance - assigned

45,000 Fund balance – unassigned

45,000

(to reverse the reservation of the fund balance)

d. ENCUMBRANCES

45,000 BUDGETARY FUND BALANCE – RESERVED FOR ENCUMBRANCES

45,000

(to establish budgetary control for the encumbrance)

35. The journal entry to record the sale of the truck is as follows: Cash

25,000 Other financing sources

25,000

(to record the sale of the truck)

36. The journal entry to record the issuance of the bond is as follows: Cash

5,000,000 Other financing sources – proceeds from bond issue

5,000,000

(to record sale of a bond)

Expenditure – Interest on Bond Expenditure – Principal on Bond Cash

250,000 1,000,000 1,250,000

(to record payment of interest and principal on bond issue) ©Cambridge Business Publishers, 2014 9-8


37. The journal entry to record the acquisition of equipment via lease is as follows: Expenditure – capital outlay Other financing sources – proceeds from capital lease

40,000 40,000

(to record the acquisition of a capital asset via lease)

Expenditure – interest Expenditure – lease obligation Cash

1,000 2,000 3,000

(to record the payment on a capital lease)

38. The journal entries to record the purchase and year-end adjustment are as follows (purchases method): Expenditures Vouchers payable

4,000 4,000

(to record purchase of $4,000 of supplies inventory)

Inventory - supplies Fund balance – assigned

1,500 1,500

(to recognize the $1,500 remaining balance of supplies inventory)

39. The journal entries to record the purchase and year-end adjustment are as follows (consumption method): Expenditures Vouchers payable

4,000 4,000

(to record purchase of $4,000 of supplies inventory)

Inventory - supplies Expenditures

1,500 1,500


Fund balance - unassigned Fund balance – assigned

1,500 1,500




40. The journal entries to record the transactions are as follows: a. ESTIMATED REVENUES ESTIMATED OTHER FINANCING SOURCES APPROPRIATIONS BUDGETARY FUND BALANCE (to record the budget)

78,924 2,000

b. Cash Receivables - real estate & personal property taxes Receivables - intergovernmental revenues Revenues - real estate & personal property taxes Revenues - intergovernmental Other financing sources - bond proceeds (record revenues and other financing sources)

2,000 68,250 12,285

c. ENCUMBRANCES BUDGETARY FUND BALANCE – RESERVED FOR ENCUMBRANCES (to record the issuance of purchase invoices)

76,508

d. BUDGETARY FUND BALANCE – RESERVED FOR ENCUMBRANCES ENCUMBRANCES (to reverse previous encumbrance journal entry) Expenditures - general government Expenditures - public safety Expenditures - education Expenditures - public works Expenditures - human services Payables (to record expenditures) e. Expenditures - debt principal payments Expenditures - debt interest payments Cash (to record debt payments)


77,273 3,651

68,250 12,285 2,000

76,508

76,508 76,508

11,476 7,651 45,905 3,825 7,651 76,508

700 100 800


f. Cash Payables

4,643 74,978

Receivables - real estate & personal property taxes Receivables – intergovernmental revenues (to record collection of receivables and payment of payables) g. Revenues

67,950 11,671

975

Deferred revenues (to defer revenues)

975

Closing Entries h. 1. APPROPRIATIONS BUDGETARY FUND BALANCE ESTIMATED REVENUES ESTIMATED OTHER FINANCING SOURCES (to reverse budget entry)

77,273 3,651 78,924 2,000

2. Revenues - real estate & personal property taxes Revenues - intergovernmental Other financing sources - bond proceeds Expenditures - general government Expenditures - public safety Expenditures - education Expenditures - public works Expenditures - human services Expenditures - debt principal payments Expenditures - debt interest payments Fund Balance - unreserved (to close out revenue and expenditure accounts)

67,275 12,285 2,000 11,476 7,651 45,905 3,825 7,651 700 100 4,252

3. BUDGETARY FUND BALANCE – RESERVE FOR ENCUMBRANCES ENCUMBRANCES

900 900

Fund balance - unassigned Fund balance - assigned (to close remaining encumbrances and reserve Fund Balance for encumbrances that lapsed, but are expected to be honored in the following year)


900 900


41. a. The pre-closing trial balance for the General Fund of the City of Bar Harbor is as follows: Trial Balance: DR Cash Receivables: Real estate & personal property Intergovernmental Payables Deferred revenues Fund balances: Assigned Unassigned Revenues - Real estate taxes Intergovernmental revenues Expenditures - General government Expenditures - Public safety Expenditures - Education Expenditures - Public works Expenditures - Human services Expenditures - Debt principal payments Expenditures - Debt interest payments Other financing sources - proceeds from bonds

$ 21,943 1,800 18,614 $ 2,130 20,475 5,400 10,100 67,275 12,285 11,476 7,651 45,905 3,825 7,651 700 100 $119,665


CR

2,000 $119,665


b. The Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances for the fiscal year for the General Fund are as follows: Balance Sheet: Cash Receivables: Real estate & personal property Intergovernmental Total Assets

$21,943 1,800 18,614 $42,357

Payables Deferred revenues Total Liabilities Fund Balances: Assigned Unassigned Total fund balances Total liabilities and fund balances

5,400 14,352 19,752 $42,357

Statement of Revenues, Expenditures, and Changes in Fund Balances: Revenues: Real estate taxes Intergovernmental Total Revenues

$67,275 12,285 79,560

Expenditures: General government Public safety Education Public works Human services Debt principal payments Debt interest payments Total Expenditures

$ 2,130 20,475 22,605

11,476 7,651 45,905 3,825 7,651 700 100 77,308

Excess (Deficiency) of Revenues over Expenditures

2,252

Other Financing Sources (Uses) Proceeds from bonds Total Other Financing Sources (Uses)

2,000 2,000

Net Change in Fund Balances Fund Balances at Beginning of Year Fund Balances at End of Year


4,252 15,500 $19,752



441,976 11,200


11,200 382,200 68,796


428,446

d. BUDGETARY FUND BALANCE – RESERVED FOR ENCUMBRANCES ENCUMBRANCES (to reverse previous Encumbrance journal entry) Expenditures - general government Expenditures - public safety Expenditures - education Expenditures - public works Expenditures - human services Payables (to record expenditures) e. Expenditures - debt principal payments Expenditures - debt interest payments Cash (to record debt payments)


432,731 20,445

382,200 68,796 11,200

428,446

428,446 428,446

64,266 42,845 257,068 21,422 42,845 428,446

3,920 560 4,480


f. Cash Payables

25,999 419,877

Receivables - Real Estate & Personal Property Taxes Receivables - Intergovernmental Revenues (to record collection of receivables and payment of payables) g. Revenues

380,520 65,356

5,460

Deferred revenues (Deferral of revenues)

5,460


432,731 20,445 441,976 11,200

2. Revenues - real estate & personal property taxes Revenues - intergovernmental Other financing sources - bond proceeds Expenditures - general government Expenditures - public safety Expenditures - education Expenditures - public works Expenditures - human services Expenditures - debt principal payments Expenditures - debt interest payments Fund Balance - unreserved (to close out revenue and expenditure accounts)

376,740 68,796 11,200 64,267 42,845 257,068 21,422 42,845 3,920 560 23,810


5,040 5,040

Fund balance - unassigned Fund Balance - assigned (to close remaining encumbrances and reserve Fund Balance for encumbrances that lapsed, but are expected to be honored in the following year)


5,040 5,040


43. a. The pre-closing trial balance for the General Fund of the City of Jackson Hole is as follows: Trial Balance: Cash Receivables: Real estate & personal property Intergovernmental Payables Deferred revenues Fund balances: Assigned Unassigned Revenues - real estate taxes Intergovernmental revenues Expenditures - general government Expenditures - public safety Expenditures - education Expenditures - public works Expenditures - human services Expenditures - debt principal payments Expenditures - debt interest payments Other financing sources - proceeds from bonds

DR $122,879 10,080 104,240

$11,929 114,660 30,240 56,560 376,740 68,796 64,266 42,845 257,068 21,422 42,845 3,920 560 $670,125


CR

11,200 $670,125


b. The Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balances for the fiscal year for the General Fund are as follows: Balance Sheet: Cash Receivables: Real estate & personal property Intergovernmental Total assets

$122,879 10,080 104,240 $237,199

Payables Deferred revenues Total liabilities Fund balances: Assigned Unassigned Total Fund Balances Total Liabilities and Fund Balances

$ 11,929 114,660 126,589 30,240 80,370 110,610 $237,199


$376,740 68,796 445,536


64,266 42,845 257,068 21,422 42,845 3,920 560 $432,926


12,610

Other financing sources (uses) Proceeds from bonds Total Other Financing Sources (Uses)

11,200 11,200



$23,810 86,800 $110,610



1,207,542 30,600


30,600 1,044,225 187,961


1,170,576

d. BUDGETARY FUND BALANCE – RESERVED FOR ENCUMBRANCES ENCUMBRANCES (to reverse previous encumbrance journal entry)

1,182,282 55,860

1,044,225 187,961 30,600

1,170,576

1,170,576 1,170,576

Expenditures - general government Expenditures - public safety Expenditures - education Expenditures - public works Expenditures - human services Payables (to record expenditures)

175,586 117,058 702,346 58,529 117,058

e. Expenditures - debt principal payments Expenditures - debt interest payments Cash (to record debt payments)

10,710 1,530


1,170,576

12,240


f. Cash Payables

71,032 1,147,165

Receivables - real estate & personal property taxes Receivables - intergovernmental revenues (to record collection of receivables and payment of payables) g. Revenues

1,039,635 178,562

14,918

Deferred revenues (Deferral of revenues) Closing Entries h. 1. APPROPRIATIONS BUDGETARY FUND BALANCE ESTIMATED REVENUES ESTIMATED OTHER FINANCING SOURCES (to reverse budget entry) 2. Revenues - Real Estate & personal Property Taxes Revenues - intergovernmental Other financing sources - bond proceeds Expenditures - general government Expenditures - public safety Expenditures - education Expenditures - public works Expenditures - human services Expenditures - debt principal payments Expenditures - debt interest payments Fund balance - unreserved (to close out revenue and expenditure accounts) 3. BUDGETARY FUND BALANCE – RESERVE FOR ENCUMBRANCES ENCUMBRANCES Fund Balance - assigned Fund Balance - unassigned (to close remaining encumbrances and reserve Fund Balance for encumbrances that lapsed, but are expected to be honored in the following year)


14,918

1,182,282 55,860 1,207,542 30,600

1,029,307 187,961 30,600 175,585 117,058 702,346 58,529 117,058 10,710 1,530 65,052

13,770 13,770 13,770 13,770


45. a. The pre-closing trial balance for the General Fund of the Village of Lahinch is as follows: Trial Balance: Cash Receivables: Real estate & personal property Intergovernmental Payables: Deferred revenues Fund balances: Assigned Unassigned Revenues - real estate taxes Intergovernmental revenues Expenditures - general government Expenditures - public safety Expenditures - education Expenditures - public works Expenditures - human services Expenditures - debt principal payments Expenditures - debt interest payments Other financing sources - proceeds from bonds

DR $335,722 27,540 284,799

$32,591 313,268 82,620 154,530 1,029,307 187,961 175,585 117,058 702,346 58,529 117,058 10,710 1,530 $1,830,877


CR

30,600 $1,830,877



$335,722 27,540 284,799 $648,061

Payables: Deferred revenues Total Liabilities Fund Balances: Assigned Unassigned Total Fund Balances Total Liabilities and Fund Balances

$ 32,591 313,268 345,859 82,620 219,582 302,202 $648,061

Statement of Revenues, Expenditures, and Changes in Fund Balances: Revenues: Real estate taxes Intergovernmental Total Revenues Expenditures: General government Public safety Education Public works Human services Debt principal payments Debt interest payments Total Expenditures

$1,029,307 187,961 1,217,268 175,585 117,058 702,346 58,529 117,058 10,710 1,530 1,182,816


34,452

Other financing sources (Uses) proceeds from bonds Total Other Financing Sources (Uses)

30,600 30,600



$65,052 237,150 $ 302,202



213,096 5,400

b. Cash Receivables - real estate & personal property taxes Receivables - intergovernmental revenues Revenues - Real Estate & personal Property Taxes Revenues - intergovernmental Other financing sources - bond proceeds (to record revenues and other financing sources)

5,400 184,275 33,170


206,572

d. BUDGETARY FUND BALANCE – RESERVED FOR ENCUMBRANCES ENCUMBRANCES (to reverse previous encumbrance journal entry)

206,572

Expenditures - general government Expenditures - public safety Expenditures - education Expenditures - public works Expenditures - human services Payables (to record expenditures) e. Expenditures - debt principal payments Expenditures - debt interest payments Cash (to record debt payments)


208,638 9,858

184,275 33,170 5,400

206,572

206,572

30,986 20,657 123,943 10,329 20,657 206,572

1,890 270 2,160


f. Cash Payables

12,535 202,441

Receivables - real estate & personal property taxes Receivables - intergovernmental revenues (to record collection of receivables and payment of payables) g. Revenues

183,465 31,511

2,633

Deferred revenues (Deferral of revenues)

2,633


208,638 9,858 213,096 5,400

2. Revenues - Real Estate & personal Property Taxes Revenues - intergovernmental

181,642 33,170

Other financing sources - bond proceeds Expenditures - general government Expenditures - public safety Expenditures - education Expenditures - public works Expenditures - human services Expenditures - debt principal payments Expenditures - debt interest payments Fund balance - unreserved (to close out revenue and expenditure accounts)

5,400 30,986 20,657 123,943 10,329 20,657 1,890 270 11,480


2,430 2,430

Fund balance - unassigned Fund balance - assigned (to close remaining encumbrances and reserve Fund Balance for encumbrances that lapsed, but are expected to be honored in the following year)


2,430 2,430


47. a. The pre-closing trial balance for the General Fund of the Village of Fish Creek is as follows: Trial Balance: DR Cash Receivables: Real estate & personal property Intergovernmental Payables: Deferred revenues Fund balances: Assigned Unassigned Revenues - real estate taxes Intergovernmental revenues Expenditures - general government Expenditures - public safety Expenditures - education Expenditures - public works Expenditures - human services Expenditures - debt principal payments Expenditures - debt interest payments Other Financing Sources - Proceeds from Bonds

$59,245 4,860 50,259 $5,751 55,283 14,580 27,270 181,642 33,170 30,986 20,657 123,943 10,329 20,657 1,890 270 $323,096


CR

5,400 $323,096



$ 59,245 4,860 50,259 $114,364

Payables Deferred revenues Total Liabilities Fund Balances: Assigned Unassigned Total Fund Balances Total Liabilities and Fund Balances

14,580 38,750 53,330 $114,364


$181,642 33,170 214,812


$ 5,751 55,283 61,034

30,986 20,657 123,943 10,329 20,657 1,890 270 208,732


6,080

Other Financing Sources (Uses) Proceeds from Bonds Total Other Financing Sources (Uses)

5,400 5,400



$ 11,480 41,850 $ 53,330


aa2e_hal_sm_ch09.docx

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