Question

P17-6	Balance Sheet, Statement of Revenues, Expenditures, and Changes in Fund Balance
	Hunnington Township’s adjusted trial balance for the General Fund at the close of its fiscal year ended June 30,
	2016, is presented here:
				Hunnington Township
				General Fund Trial Balance
				30-Jun-16
	Cash				$11,000
	Property Tax Receivable—current (Note 1)				82,000
	Estimated Uncollectible Taxes—current					$1,500
	Property Tax Receivable—delinquent				25,000
	Estimated Uncollectible Taxes—delinquent					16,500
	Accounts Receivable (Note 1)				40,000
	Allowance for Uncollectible Accounts					4,000
	Due from Internal Service Fund (Note 5)				50,000
	Expenditures (Note 2)				755,000
	Encumbrances				37,000
	Revenue (Note 3)					60,000
	Due to Enterprise Fund (Note 5)					10,000
	Vouchers Payable					20,000
	Surplus Receipts (Note 4)					7,000
	Appropriations					720,000
	Fund Balance—Asssigned (Note 6)					81,000
	Fund Balance—Unasssigned					80,000
					$1,000,000	$1,000,000
	Note 1: The current tax roll and accounts receivable, recorded on the accrual basis as sources of revenue,
	amounted to $500,000 and $200,000, respectively.
	Note 2: Includes $42,500 paid during the fiscal year in settlement of all purchase orders outstanding at the
	beginning of the fiscal year
	Note 3: Represents the difference between the budgeted (estimated) revenue of $700,000 and the actual
	revenue realized during the fiscal year.
	Note 4: Represents the proceeds from the sale of equipment damaged by fire. The equipment originally
	cost $40,000 and had been held for 80% of its useful life prior to the fire.
	Note 5: The interfund payable and receivable resulted from cash advances (loans) to and from the respective
	funds.
	Note 6: Includes $44,000 of encumbrances from prior year.
	Required:
	A. Prepare a statement of revenues, expenditures, and changes in fund balance.
	B. Prepare a balance sheet for the General Fund at June 30, 2016. (AICPA adapted)

Answer 1

Part A	HUNNINGTON TOWNSHIP Statement of Revenues, Expenditures and Changes in Fund Balance For the Year Ended June 30, 2016
	Revenue Expenditures: Current Year’s Appropriation Prior Year’s Appropriation Total Excess of Revenues over Expenditures Sale of Equipment Increase (Decrease) in Fund Balance Fund Balance July 1, 2015 Fund Balance June 30, 2016 a $700,000 + $60,000 = $767,000 b $755,000 - $42,500 = $712,500 c Unreserved fund balance per trial balance Add appropriations Deduct estimated revenue (note 3) Unreserved fund balance - July 1, 2015 Reserve for encumbrances - July 1, 2015 Fund Balance - July 1, 2015 d Unreserved fund balance per trial balance Add revenue in excess of estimated revenue ($767,000 - $700,000) Deduct expenditures and encumbrances in excess of appropriations [($755,000 + $37,000) - $764,000] Unreserved fund balance - June 30, 2016 Reserve for encumbrances Fund Balance - June 30, 2016	$760,000a 712,500b     42,500 755,000 5,000     7,000 12,000 144,000c $156,000d $80,000 720,000 (700,000) 100,000     44,000 $144,000 $80,000 67,000     (28,000) 119,000      37,000 $156,000

Part B	HUNNINGTON TOWNSHIP The General Fund Balance Sheet June 30, 2016
	Assets Cash Property Tax Receivable Less Estimated Uncollectible Taxes Accounts Receivable Less Allowance for Uncollectible Accounts Due from Internal Service Fund Total Liabilities and Fund Balance Vouchers Payable Due to Enterprise Fund Fund Balance: Unreserved Reserve for Encumbrances Total	$107,000      18,000 40,000        4,000 $119,000      37,000	$11,000 89,000 36,000      50,000 $186,000 $20,000 10,000    156,000 $186,000