The General Fund of Celadon City has a total fund balance of…
The General Fund of Celadon City has a total fund balance of $1,000,000 as of its fiscal year-end, December 31, 20X1. The following information regarding its General Fund activities is available. The balance sheet of Celadon City showed $100,000 of inventory on December 31, 20X1. The highest level of decision-making authority for the City (the City Council) passed an ordinance that any royalty payments received from oil production on city property must be used for city park maintenance. At year-end, the city had not spent $220,000 of the oil royalty proceeds that it had received. The General Fund made a long-term loan of $60,000 to the Civic Center Capital Projects Fund during 20X1. None had been repaid by December 31, 20X1, and none is expected to be repaid until 20X3. The City Council of Celadon City approves its 20X2 budget in December 20X1. It appropriates $110,000 of the December 31, 20X1 fund balance to eliminate an anticipated General Fund budget deficit in the 20X2 budget. The General Fund receives a grant from a local foundation that must be used for tree maintenance. The grant had no time restrictions. At year-end, the General Fund had unspent resources of $10,000. The City decided to account for this in the General Fund because it is considered immaterial and most of the grant proceeds had been spent in 20X1. Required: Based on the information above, prepare the fund balance section of the City’s General Fund Balance Sheet.
The General Fund of Celadon City has a total fund balance of…
Questions
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The Generаl Fund оf Celаdоn City hаs a tоtal fund balance of $1,000,000 as of its fiscal year-end, December 31, 20X1. The following information regarding its General Fund activities is available. The balance sheet of Celadon City showed $100,000 of inventory on December 31, 20X1. The highest level of decision-making authority for the City (the City Council) passed an ordinance that any royalty payments received from oil production on city property must be used for city park maintenance. At year-end, the city had not spent $220,000 of the oil royalty proceeds that it had received. The General Fund made a long-term loan of $60,000 to the Civic Center Capital Projects Fund during 20X1. None had been repaid by December 31, 20X1, and none is expected to be repaid until 20X3. The City Council of Celadon City approves its 20X2 budget in December 20X1. It appropriates $110,000 of the December 31, 20X1 fund balance to eliminate an anticipated General Fund budget deficit in the 20X2 budget. The General Fund receives a grant from a local foundation that must be used for tree maintenance. The grant had no time restrictions. At year-end, the General Fund had unspent resources of $10,000. The City decided to account for this in the General Fund because it is considered immaterial and most of the grant proceeds had been spent in 20X1. Required: Based on the information above, prepare the fund balance section of the City’s General Fund Balance Sheet.
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