At the end of Year 4, the city owed teachers $60,000 in vacation pay that had not been recorded. The assumption is that these vacations will be taken evenly over the next year. A 60-day period is used to determine available funds.

a. What is the correct change in the fund balance of the General Fund for the year?

b. What is the correct overall change in the net assets in the government-wide financial statements?

The City of Wolfe has issued its financial statements for Year 4 (assume that the city uses a calendar year). The city maintains the General Fund made up of two functions: (1) education and (2) parks. The city also utilizes capital projects funds for ongoing construction and an enterprise fund to account for its art museum. It also has one discretely presented component unit.