Question

Ted’s Village has five governmental funds: a General Fund, a Debt Service Fund, and three special revenue fund. IT has no proprietary funds. The following information is available at December 31, 2019 for each of the funds. First, determine which of the funds are major funds. Then, prepare a balanace sheet in the appropriate format, showing the major funds, a total for the nonmajor funds, and a total for all government funds

				Special Revenue
	General	Debt Service	Fund A	Fund B	Fund C
Cash	10,000	5,000	600	300	700
Taxes Receivable	5,000	2,000
Accounts Payable	6,000		200	100	400
Assigned Fund Balance	1,000		400	200	300
Restricted Fund Balance		7,000
Unassigned fund balance	8,000
total revenues	52,000	6,000	2,400	1,200	3,400
total expenditures	48,000	5,000	2,300	1,100	3,200

Answer 1

Major Funds

The general fund is always shown separately in the financial statements. The largest of the other individual governmental funds, based on the amount of financial activity that takes place in them, are also shown separately. Funds that cross certain benchmarks are required to be reported separately, and governments may show smaller governmental funds separately if those funds are considered important to the government or the readers of its financial statements. The remaining "non-major" funds are aggregated in a single column on the face of the financial statements.

Governmental Funds Balance Sheet

Assets:

Particulars	General Fund	Debt Service Fund	Fund A	Special Revenue Fund B	Special Revenue Fund C	Total Funds
Assets
Cash	10000	5000	600	300	200	16100
Taxes Receivables	5000	2000				7000
Total Assets	15000	7000	600	300	200	23100
Liabilities and Fund Balances
Accounts Payable	6000		200	100	400	6700
TOTAL Liabilities	6000		200	100	400	6700
Fund Balances
Assigned Fund Balance	1000		400	200	300	1900
Restricted Fund Balance		7000				7000
Unassigned fund balance	8000					8000
total Fund Balance	9000	7000	400	200	300	16900
Total Liab&Fund bal	15000	7000	600	200	300	23100