Chapter 16, Problem 40P

The following unadjusted trial balances are for the governmental funds of the City of Copeland prepared from the current accounting records:

General Fund		Debit	Credit
Cash		$ 19,000
Taxes Receivable		202,000
Allowance for Uncollectible Taxes			$ 2,000
Vouchers Payable			24,000
Due to Debt Service Fund			10,000
Unavailable Revenues			16,000
Encumbrances Outstanding			9,000
Fund Balance—Unassigned			103,000
Revenues			176,000
General Fund	Debit		Credit
Expenditures	110,000
Encumbrances	9,000
Estimated Revenues	190,000
Appropriations			171,000
Budgetary Fund Balance			19,000
Totals	$530,000		$530,000

Debt Service Fund	Debit	Credit
Cash	$ 8,000
Investments	51,000
Taxes Receivable	11,000
Due from General Fund	10,000
Fund Balance—Committed		$ 45,000
Revenues		20,000
Other Financing Sources—Operating Transfers In		90,000
Expenditures	75,000
Totals	$155,000	$155,000

Capital Projects Fund	Debit	Credit
Cash	$ 70,000
Special Assessments Receivable	90,000
Contracts Payable		$ 50,000
Unavailable Revenues		90,000
Encumbrances Outstanding		16,000
Fund Balance—Unassigned		–0–
Other Financing Sources		150,000
Expenditures	130,000
Encumbrances	16,000
Estimated Other Financing Sources	150,000
Appropriations		150,000
Totals	$456,000	$456,000

Special Revenue Fund	Debit	Credit
Cash	$ 14,000
Taxes Receivable	41,000
Inventory of Supplies	4,000
Vouchers Payable		$ 25,000
Grant Revenues Collected in Advance		3,000
Fund Balance—Nonspendable		4,000
Encumbrances Outstanding		3,000
Fund Balance—Unassigned		19,000
Revenues		56,000
Expenditures	48,000
Encumbrances	3,000
Estimated Revenues	75,000
Appropriations		60,000
Budgetary Fund Balance		15,000
Totals	$185,000	$185,000

 Based on the information presented for each of these governmental funds, answer the following questions:

1. a. How much more money can city officials expend or commit from the general fund during the remainder of the current year without amending the budget?
2. b. Why does the capital projects fund have no construction or capital asset accounts?
3. c. What does the $150,000 Appropriations balance found in the capital projects fund represent?
4. d. Several funds have balances for Encumbrances and Encumbrances Outstanding. How will these amounts be accounted for at the end of the Fiscal year?
5. e. Why does the Fund Balance—Unassigned account in the capital projects fund have a zero balance?
6. f. What are possible explanations for the $150,000 Other Financing Sources balance found in the capital projects fund?
7. g. What does the $75,000 balance in the Expenditures account of the debt service fund represent?
8. h. What is the purpose of the Special Assessments Receivable found in the capital projects fund?
9. i. In the special revenue fund, what is the purpose of the Fund Balance—Nonspendable account?
10. j. Why does the debt service fund not have budgetary account balances?