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Encumbrances have an impact on unassigned fund balance, but do not affect total fund balance. At the start of its fiscal year on Jan 1,

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Encumbrances have an impact on unassigned fund balance, but do not affect total fund balance. At the start of its fiscal year on Jan 1, Fox County reported the following (all dollar amounts in thousands): Fund balance: Reserved for encumbrances ( r fenc) $500 Unassigned 800 Total fund balance $1300 note ; any outstanding commitments are reappropriated within the budget of next year. During the year, the county (all dollar amounts in thousands): - Estimated that revenues for the year would be $7000. - Appropriated $6,900 for operations. - Ordered goods and services estimated to cost $5,000. Of these, the county received (and used) goods and services that it had estimated would cost $4,000. Actual cost, however, was $4,200. - Received (and used) all goods that it ordered in the previous year (500). Actual cost was only $600. - Recognized actual revenues of $7,400. - Other actual expenditures incurred and paid 1800 . 1. Make journal entries to record above transactions 2. Prepare statement of revenues and expenditures. 3. Determine the ending total fund balance end of year how much of the total assigned and un assigned. 4. 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? Encumbrances have an impact on unassigned fund balance, but do not affect total fund balance. At the start of its fiscal year on Jan 1, Fox County reported the following (all dollar amounts in thousands): Fund balance: Reserved for encumbrances ( r fenc) $500 Unassigned 800 Total fund balance $1300 note ; any outstanding commitments are reappropriated within the budget of next year. During the year, the county (all dollar amounts in thousands): - Estimated that revenues for the year would be $7000. - Appropriated $6,900 for operations. - Ordered goods and services estimated to cost $5,000. Of these, the county received (and used) goods and services that it had estimated would cost $4,000. Actual cost, however, was $4,200. - Received (and used) all goods that it ordered in the previous year (500). Actual cost was only $600. - Recognized actual revenues of $7,400. - Other actual expenditures incurred and paid 1800 . 1. Make journal entries to record above transactions 2. Prepare statement of revenues and expenditures. 3. Determine the ending total fund balance end of year how much of the total assigned and un assigned. 4. 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

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