Essentials of Accounting for Governmental and Not-for-Profit Organizations 10th Edition by Paul Copley, John Engstrom

Exercise 2

The City of Oxbow General Fund has the following net resources at year- end:
• $100,000 unexpended proceeds of a state grant required by law to be used for health education.
• $15,000 of prepaid insurance.
• $500,000 rainy day fund approved by city council for use under speci­fied circumstances.
• $25,000 of contractual obligations for capital projects.
• $50,000 unexpended proceeds of a tax required by law to be used for emergency 911 services.
• $550,000 to be used to fund government operations in the future.
Required: Prepare the fund balance section of the Balance Sheet.