Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 13

The City of Bacon holds cash of $820,000 that was received from the issuance of a bond and, according to the contract, must be spent for the construction of a new elementary school.The city also has $60,000 in supplies.How should the fund balance be reported
a.Restricted-$880,000.
b.Nonspendable-$60,000 and restricted-$820,000.
c.Nonspendable-$60,000 and committed-$820,000,
d.Nonspendable-$60,000 and assigned-$820,000.