CHAPTER 16 WILEY HOMEWORK SOLUTIONS
ANSWERS TO EXERCISES
Exercise 16–3
1. Estimated Revenues 1,950,000
Appropriations 1,800,000
Fund Balance - Unassigned 150,000
2. Property Tax Receivable 1,150,000
Estimated Uncollectible Property Tax 35,000
Revenue 1,115,000
3. Cash 1,080,000
Property Tax Receivable 1,080,000
4. Expenditures 200,000
Cash 200,000
Cash 24,000
OFS – Sale of Capital Assets 24,000
5. Encumbrances 96,000
Reserve for Encumbrances 96,000
6. Expenditures 8,000
Contracts Payable 8,000
Reserve for Encumbrances) 8,000
Encumbrances 8,000
7. Contracts Payable 8,000
Cash 8,000
17 - 1
, Exercise 16–5
1. Appropriations 1,550,000
Fund Balance-Unassigned 140,000
Estimated Revenue 1,690,000
2. Revenue 1,675,000
Expenditures 1,310,000
Encumbrances 165,000
Fund Balance-Unassigned 200,000
3. Fund Balance - Assigned (Encumbrances – 2019) 35,000
Expenditures – 2019 32,000
Fund Balance-Unassigned 3,000
Exercise 16–10
1. d 2. a 3. d 4. b 5. c 6. c
Exercise 16–11
1. Inventory funds are classified as nonspendable fund balance.
2. The city council is the highest level of decision making for a city. The amount should be
reported as a committed fund balance.
3. Since the principal of $10 million cannot be expended, the amount should be reported as
nonspendable fund balance.
4. For the general fund, amounts constrained for the intent to be used for a specific purpose by an
official that has been delegated authority to assign amounts (such as the Chief Financial Officer)
are treated as assigned fund balance.
5. The governing board is the highest level of decision making for the University. The amount
should be reported as a committed fund balance.
6. For the general fund, amounts constrained for the intent to be used for a specific purpose by an
official that has been delegated authority to assign amounts (such as the Chief Financial Officer)
are treated as assigned fund balance.
17 - 2
ANSWERS TO EXERCISES
Exercise 16–3
1. Estimated Revenues 1,950,000
Appropriations 1,800,000
Fund Balance - Unassigned 150,000
2. Property Tax Receivable 1,150,000
Estimated Uncollectible Property Tax 35,000
Revenue 1,115,000
3. Cash 1,080,000
Property Tax Receivable 1,080,000
4. Expenditures 200,000
Cash 200,000
Cash 24,000
OFS – Sale of Capital Assets 24,000
5. Encumbrances 96,000
Reserve for Encumbrances 96,000
6. Expenditures 8,000
Contracts Payable 8,000
Reserve for Encumbrances) 8,000
Encumbrances 8,000
7. Contracts Payable 8,000
Cash 8,000
17 - 1
, Exercise 16–5
1. Appropriations 1,550,000
Fund Balance-Unassigned 140,000
Estimated Revenue 1,690,000
2. Revenue 1,675,000
Expenditures 1,310,000
Encumbrances 165,000
Fund Balance-Unassigned 200,000
3. Fund Balance - Assigned (Encumbrances – 2019) 35,000
Expenditures – 2019 32,000
Fund Balance-Unassigned 3,000
Exercise 16–10
1. d 2. a 3. d 4. b 5. c 6. c
Exercise 16–11
1. Inventory funds are classified as nonspendable fund balance.
2. The city council is the highest level of decision making for a city. The amount should be
reported as a committed fund balance.
3. Since the principal of $10 million cannot be expended, the amount should be reported as
nonspendable fund balance.
4. For the general fund, amounts constrained for the intent to be used for a specific purpose by an
official that has been delegated authority to assign amounts (such as the Chief Financial Officer)
are treated as assigned fund balance.
5. The governing board is the highest level of decision making for the University. The amount
should be reported as a committed fund balance.
6. For the general fund, amounts constrained for the intent to be used for a specific purpose by an
official that has been delegated authority to assign amounts (such as the Chief Financial Officer)
are treated as assigned fund balance.
17 - 2
