The Town of Baker reported the following items on the June 30,2009,balance sheet of its general fund: At June 30,2009,what amount should be reported for Fund Balance-Unreserved?
A)$46,000
B)$40,000
C)$30,000
D)$16,000

Question

Quizplus · Accepted Answer

Fund Balance-Unreserved represents the residual amount of a funded when all liabilities and reserved fund balances are deducted from total fund balance. In this case, the liabilities and reserved fund balances add up to $16,000 ($6,000 for accounts payable and $10,000 for encumbrances). Therefore, the Fund Balance-Unreserved must be $30,000 ($46,000 - $16,000). Option C is the only possible answer.

The Town of Baker Reported the Following Items on the June