Question

The General Fund of the City of Davis Fort has a total fund balance of $1,500,000 as of its fiscal year-end, December 31, 2019. Please review the following additional information regarding its General Fund activities and determine how much fund balance should be classified as nonspendable, restricted, committed, assigned, and unassigned. Show the calculations necessary for making the fund balance determinations.
a. The balance sheet of the City of Davis Fort showed $200,000 of inventory on December 31, 2019.
b. The highest level of decision making authority for the city (the city council) passed an ordinance that any royalty payments received from oil production on city property must be used for city park maintenance. At year-end, the city had not spent $150,000 of the oil royalty proceeds that it had received.

Answer 1

Answer:

attached below

Explanation:

Total fund Balance = $1500000  as at December 31 2019

A) Balance sheet of city of Davis fort = $200000 as at December 31 2019

B) unused royalty = $150000

 Non spendable fund = Inventories

 Committed fund = unused Royalty payments