Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 10

The City of Wolfe has issued its financial statements for Year 4 (assume that the city uses a calendar year). The city maintains the General Fund made up of two functions: (1) education and (2) parks. The city also utilizes capital projects funds for ongoing construction and an enterprise fund to account for its art museum. It also has one discretely presented component unit.
The government-wide financial statements indicated the following Year 4 totals:
Education had net expenses of $710,000.
Parks had net expenses of $130,000.
Art museum had net revenues of $80,000.
General revenues were $900,000; the overall increase in net assets was $140,000.
The fund financial statements issued for Year 4 indicated the following:
The General Fund had an increase of $30,000 in its fund balance.
The Capital Projects Fund had an increase of $40,000 in its fund balance.
The Enterprise Fund had an increase of $60,000 in its net assets,
Officials for Wolfe define "available" as current financial resources to be paid or collected within 60 days.
At the end of Year 4, the city owed teachers $60,000 in vacation pay that had not been recorded. The assumption is that these vacations will be taken evenly over the next year. A 60-day period is used to determine available funds.
a. What is the correct change in the fund balance of the General Fund for the year
b. What is the correct overall change in the net assets in the government-wide financial statements