Unmatured principal installments and accrued interest which is due shortly after year end are required to be reported as liabilities in the debt service fund at year end? True of false
When bonds are sold to construct a capital asset through a capital projects fund, an entry would be made to debit Cash and credit Bonds Payable in the capital projects fund. True or False
Center City’s General Fund has the following net resources at year end:
· $658,800 total fund balance
· $100,000 rainy day fund approved by the township governing board
· $2,500 of supplies inventory
· $75,000 state grant for snow removal
· $150,000 contractual obligations for capital projects
· $80,000 of outstanding encumbrances representing purchase orders which will be paid from the General Fund
Required: Prepare the fund balance section of the Balance Sheet.