At the start of its fiscal year on October 1, Fox County reported the following (all dollar amounts in thousands):
Fund balance:
Committed for encumbrances............$200
Unassigned...................................400
Total fund balance........................$600
During the year, the county (all dollar amounts in thousands):
• Estimated that revenues for the year would be $6,300.
• Appropriated $6,500 for operations.
• Ordered goods and services estimated to cost $6,000. Of these, the county received (and used) goods and services that it had estimated would cost $5,000. Actual cost, however, was $5,200.
• Received (and used) all goods that it ordered in the previous year. Actual cost was only $180.
• Recognized actual revenues of $6,400.
1. Prepare a schedule, similar to that illustrated in the text, of changes in unassigned fund balance.
2. Show how the total fund balance (including the unassigned and committed portions) would be displayed at year‐end.
3. Does the total fund balance at the beginning of the year, plus the actual revenues, minus the actual expenditures, equal the total fund balance at the end of the year?