32 The City of Riner General Fund has the following net reso

3-2 The City of Riner General Fund has the following net resources at year-end: • $150 unexpended proceeds of a state grant required by law to be used for health education. • $15 of prepaid insurance. • $600 rainy day fund approved by city council for use under specified circumstances. • $125 provided for contractual obligations for capital projects. • $16 unexpended proceeds of a tax required by law to be used for emergency 911 services. • $1,600 total fund balance. Required: Prepare the fund balance section of the Balance Sheet.

Solution

The fund section of balance sheet will appear like this:

It is given that total fund balance is $ 1600 and the details of specific reserved and unreserved funds have been provided totalling to $ 906.

Thus the difference $ 694 will be the unassigned fund amount.The amount not assigned to a particular specific fund or purpose.

The rainy day fund is kept under unreserved since the purpose it will be used for in rainy season is unspecified whether it will be a revenue or capital purpose.