The attached file s p 2 is the assignment. it is based on 16 - 40 which includes answers. It is creating a post closing trial balance sheet for each fund. more detail attached. this is for advanced -accounting.

16 The following unadjusted trial balances are for the governmental funds 40. of the City of Copeland prepared from the current accounting records: Based on the information presented for each of these governmental funds, answer the following questions: a. How much more money can city officials expend or commit from the general fund during the remainder of the current year without amending the budget? b. Why does the capital projects fund have no construction or capital asset accounts? c. What does the $150,000 Appropriations balance found in the capital projects fund represent? d. Several funds have balances for Encumbrances and Encumbrances Outstanding. How will these amounts be accounted for at the end of the fiscal year? e. Why does the Fund BalanceUnassigned account in the capital projects fund have a zero balance? f. What are possible explanations for the $150,000 Other Financing Sources balance found in the capital projects fund? g. What does the $75,000 balance in the Expenditures account of the debt service fund represent? h. What is the purpose of the Special Assessments Receivable found in the capital projects fund? i. In the special revenue fund, what is the purpose of the Fund BalanceNonspendable account? j. Why does the debt service fund not have budgetary account balances? ANSWERS 16-40. (Answer questions about ledger account balances) a. As the Appropriations account balance in the General Fund shows a total of $171,000, that amount of money has been authorized for expenditure during this fiscal period. Thus, only that total can be expended or committed. To date, a total of $119,000 has been spent or committed ($110,000 of expenditures and $9,000 in encumbrances). The remaining $52,000 is still available. Of course, if the budget is amended, additional amounts could be spent. b. The governmental funds are all designed to monitor current financial resources and their inflows and outflows. Therefore, the Capital Projects Fund records expenditures made to acquire or construct capital assets and the sources of that money. The purpose of that fund is not to record the asset itself. Consequently, these assets are reported in the governmentwide financial statements but not in the fund statements created for the governmental funds. c. The Appropriations balance represents the amount that government officials have authorized to be spent on a particular construction project. The amount was established by the passage of a formal budget. d. At the end of the year, any remaining commitments will be removed from the accounting records by reversing the original encumbrance entry (which eliminates both the encumbrance and the encumbrance outstanding). The government might agree to pay for these commitments even though they did not arrive until the following fiscal year. If so, in creating a balance sheet for the governmental funds, this amount is shown as a fund-balance restricted, committed, or assigned, depending on who made the decision to spend the resources in this manner. e. Money is not recorded in any of the governmental funds (except for the General Fund) without some explicit reason. It comes from a tax, perhaps, or a gift or grant. These amounts are only put into these funds because each has a particular purpose. Thus, a fund balance-unassigned is not possible in any fund other than the General Fund. The asset could simply not be in another fund unless some designation (either externally or internally) had been made. Whether the fund balance is restricted, committed, or assigned depends on the party that made the decision to spend the money in this particular way. f. Two reasons are most likely for the $150,000 Other Financing Sources balance. First, a bond may have been issued to finance the construction project. Because the debt itself is not recorded in the fund financial statements, the governmental fund must record the receipt by means of an Other Financing Sources designation. 16-40 continued Second, the $150,000 may have come from a transfer (most likely from the General Fund). Such transfers are not considered revenue by the recipient and, therefore, the inflow of current financial resources is recorded as an Other Financing Source. g. The Debt Service Fund is utilized to accumulate money to pay off the principal and interest of any long-term liability incurred by the governmental funds. Payment of both debt and interest is made from the Debt Service Fund and those payments are recorded as expenditures. Noncurrent debt is not maintained in the fund financial statements but does appear in the government-wide financial statements. h. Special assessment projects are undertaken by a government to benefit particular properties with the owners bearing part (or all) of the cost. Curbing, as an example, or the installation of lights can be special assessment projects. If the government has no responsibility for costs, recording of all financial resources inflows and outflows is made in an Agency Fund. However, if government does maintain some responsibility (if, for example, the government is secondarily liable for debts incurred), the construction is recorded in a Capital Projects Fund. Thus, receivable balance shown here would indicate that this project is being recorded in this manner. Collection of the receivable will be made from the citizens being benefited. The money will be used in paying for the construction. i. This designation indicates that the government is reporting one or more assets that are not free to be spent for future expenditures. In the asset section of the trial balance, a $4,000 figure is included as the government's Inventory of Supplies. That amount is reported but is not available to be spent. Thus, an equal portion of the fund balance is shown as nonspendable. j. Budgetary entries are optional for Debt Service Funds and are not typically used. Expenditure levels (for principal and interest) are set contractually by the debt indenture. Thus, additional financial control is not obtained by the inclusion of budgetary amounts. 17_047 SP2 Script For SP2, you use the trial balances of four funds from a previous homework problem which used those trial balances for several discussion questions. As SP2, assume that the four trial balances were taken as of the end of the year. Your job is to prepare the post-closing balance sheets for each fund -- a total of four balance sheets. You can show the balance sheets as four separate documents or as four columns on a single page. If you use four columns on a single page, you don't need a totals column. Be sure you provide financial statements, not just post-closing trial balances. You need to review the information from the trial balances to see if what would be included in the balance sheet and if changes are needed for balance sheet presentation, especially for the fund balances, including for the fund balance categories. You may use a closing worksheet like the one you prepared for SP1 to stay in balance and find the post-closing amounts, but you don't have to. You may be able to prepare the balance sheet directly since the trial balances for these funds are not complex. Use the correct Blackboard Journal to submit the problem and check it later to see your feedback. Start early so you are sure your work is accepted promptly. If everyone waits until the last possible minute to submit SP2, then response might be delayed. If you get stuck or have a question, send in your work to get help. You can submit as often as you need to. If you don't send anything in, I have no way to help you with this. Thank you for your note. This problem asks for financial statements, so there would be dollar signs -- at least at the top and bottom. You can see one way to display the dollar signs in exhibit 16.3 on page 713 of the text. An account appears to be missing from the General Fund. The Allowance for uncollectible taxes would not be shown in the liabilities section. It is a contra-asset account that reduces the total assets and would be shown right after the taxes receivable account. The term \"encumbrances\" would not appear on the balance sheet. You can review how to enter and remove encumbrances in problem 16-33 which can be found at item 16_050 in the online version of the course. The Fund balance would be displayed on the balance sheet in several categories for clear presentation to the reader. When you find the correct total fund balance, you will want to display it in the categories discussed on pages 715-716 in the text and in item 16_075 in the online version of the course. Please review and resubmit. I'll note that you have started. Best regards