2. A City has the following balances in the accounts of its capital projects fund at year-end before closing entries. All accounts have normal balances. All amounts are in millions of dollars.

REQUIRED:

(a) Prepare an operating statement for the capital projects fund.

(b) Prepare a balance sheet for the capital projects fund.

Cash $ 68

Deferred Inflow of Resources $ 5

Encumbrances $ 38

Expenditures $ 10

Fund balanceUnassigned $ 18

Grants receivable $ 10

Other financing sources $ 50

Other financing uses $ 5

Reserve for encumbrances $ 38

Revenues $ 20