Using the following information, prepare the statement of revenues, expenditures, and changes in fund balance for the General Fund of the Abu Dhabi City for the fiscal year ended December 31, 2020 (6 marks).

1.Unreserved Fund Balance at January 1, 2020, $2,000,000.

2.Estimated revenues for the year were $10 million, appropriations were $11 million.

3.Fund balance reserves, January 1

A.For encumbrances$125,000

B.For inventory$100,000

4.Revenues recorded by the bookkeeper for 2020 included:

Property taxes, $6 million

License and permits, $550,000

Intergovernmental grant revenues, $1,300,000

Proceeds from sale of capital asset, $222,000

Transfer from enterprise fund, $600,000

Expenditures recorded by the bookkeeper for 2020 included:

General government expenditures, $2,300,000

Public safety expenditures, $3,000,000

Highways and streets expenditures, $2,500,000

Health and sanitation expenditures, $700,000

Short-term note principal retirement, $200,000

Short-term note interest, $15,000

Payment to provide initial financing for Landfill Enterprise Fund, $640,000

Lease payments on a capital lease (2nd year of lease term), $92,000

Encumbrances outstanding at year end included:

Public safety, $30,000

Highways and streets, $276,000

A long-term note to be repaid from General Fund resources is scheduled to mature on January 31, 2021. The amount due will include the principal ($80,000) and one year's interest, $12,000.

B. The Government of Abu Dhabis Chart of Accounts consists of Entity Code, Cost Centre Code, Budget Group Code, Natural Account Code and Activity output/function Code. Explain the Natural Account Code.(4 marks)