Question

The governmental funds of the City of Westchester report $626,000 in assets and $231,000 in liabilities. The following are some of the assets reported by this government.

• Prepaid items—$8,300.
• Cash from a bond issuance that must be spent within the school system according to the bond indenture—$129,000.
• Supplies—$8,200.
• Investments given by a citizen that will be sold with the proceeds used to beautify a public park—$44,750.
• Cash that the assistant director of finance has designated for use in upgrading the local roads—$44,250.
• Cash from a state grant that must be spent to supplement the pay of local kindergarten teachers—$77,750.
• Cash that the city council (the highest level of authority in the government) has voted to use to renovate a school gymnasium—$72,250.

On a balance sheet for the governmental funds, what fund balance amounts will be reported by the City of Westchester?

Answer 1

Fund balance— non-spendable
Prepaid items	$8,300
Supplies	$8,200	$16,500
Fund balance— restricted
Cash from bond issuance	$129,000
Investments donated by citizen	$44,750
State grant for kindergarten teachers	$77,750	$251,500
Fund balance— committed
Cash to be used for renovation		$72,250
Fund-balance— assigned
Cash to upgrade roads		$44,250
Fund-balance— unassigned		$10,500
Total fund balance		$395,000