The town of Baker reported the following items on the June 30, 20X9 balance sheet of its general fund :
Cash $50,000
Property Taxes Receivable – Delinquent 24,000
Inventory Supplies 10,000
Vouchers Payable 34,000
Due to Internal Service Fund 4,000
Fund Balance – Assigned for Encumbrances 6,000
Fund Balance – Nonspendable ?
Fund Balance – Unassigned ?
At June 30, 20X9, what amount should be reported for the Fund Balance – Unassigned?
Answer:
amount should be reported for the Fund Balance – Unassigned = $ 30,000
Working notes for the above answer is as under
| Assets | |
| Cash | 50,000 |
| Property Taxes Receivable – Delinquent | 24000 |
| Inventory Supplies | 10000 |
| Total | 84,000 |
| Liability | |
| Vouchers Payable | 34000 |
| Due to Internal Service Fund | 4000 |
| Fund Balance – Assigned for Encumbrances | 6000 |
| 44,000 | |
| Fund Balance – No spendable | 10,000 |
| Fund Balance – Unassigned | ? |
| 84000 |
So Fund Balance – Unassigned will come as balancing Figure i.e
=84,000 – 34000 – 4000 -6,000 – 10,000
=30,000
