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The City of Armona Had the Following Assets and Liabilities

Question 11

Essay

The City of Armona had the following assets and liabilities at June 30, 20X3, the end of its fiscal year all amounts are in thousands:
 Assets  Cash 5,250 Investments 250 Taxes Receivable 1,300 Allowance for Uncollectible Taxes 200 Due from Special Revenue Fund 150 Inventory 200 Advance to Enterprise Fund 150 Total Assets 7,100 Liabilities  Vouchers Payable 750 Short-Term Note Payable 1,000 Accrued Wages Payable 200 Due to Internal Service Fund 50 Total Liabilities 2,000\begin{array}{lr}\text { Assets }\\\text { Cash } & 5,250 \\\text { Investments } & 250 \\\text { Taxes Receivable } & 1,300 \\\text { Allowance for Uncollectible Taxes } & 200 \\\text { Due from Special Revenue Fund } & 150 \\\text { Inventory } & 200 \\\text { Advance to Enterprise Fund } & 150 \\\text { Total Assets } & 7,100\\\text { Liabilities }\\\text { Vouchers Payable } & 750 \\\text { Short-Term Note Payable } & 1,000 \\\text { Accrued Wages Payable } & 200 \\\text { Due to Internal Service Fund } & 50 \\\text { Total Liabilities } & 2,000\end{array} Additional information:
1. The city received a state grant of $300 stipulating that it could be spent at any time on equipment. To date, none of the money has been spent.
2. The city council, in a formal vote, decided to set aside another $500 for equipment purchases.
Requirement: Calculate the five components of Fund Balance.

Correct Answer:

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Total Fund Balance = Assets - Liabilitie...

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