Question

The City of Orleans has the following balances in the accounts of its Capital Project Fund at year end. All accounts have normal balances. All amounts are in millions.

REQUIRED:

(A) Prepare a statement of revenues, expenditures and changes in fund balance and (B) Prepare a balance sheet with the following information listed below.

Cash $75

Deferred inflow of resources $20

Encumbrances   $7

Expenditures $10

Fund Balance - Beginning of Year $15

Grants Receivable $15

Other financing sources $50

Other financing uses $10

Fund Balance - Reserved for encumbrances $30

Fund Balance - Unassigned $40

Investment Revenue $5

Revenues $20

Answer 1

City of Orlens

Statement of revenues, expenditures and changes in fund balance

Revenues	Million $
Revenue	20
Investmen Revenue	5
Total Revenue	25
Expenditures
Total Expenditure	10
Excess of revenue over expenditure	15
Other financing sources (usages)
other financing sources	50
other financing uses	(10)
Total other financing sources(usages)	40
Excess of revenue and financing sources over expenditure	55
Fund Balance - Begining	15
Fund Balance - Ending	70

To adjust encumbrances of $7, an entry would be passed to adjust fund balance as follows.

Revenues Dr 20

Expenses Cr 10

Encumbrances Cr 7

Unassigned Fund Cr 3

so by this adjustment unassingned fund will be decrease by $3 and reserve for encumbrances would be increase by $7.

Balance Sheet

Assets	Million $
Cash	75
Grant Receivables	15
Unassigned fund balance (40-3)	37
Total Assets	127
Liabilities & Fund Balances
Deffered inflow of revenues	20
Reserved for encumbrances (30+7)	37
Ending basis of fund (from statment)	70
Total Liabilities and fund balances	127