Response to the following problem:
The City of Oxbow General Fund has the following net resources at yearend:
• $100,000 unexpended proceeds of a state grant required by law to be used for health education.
• $15,000 of prepaid insurance.
• $500,000 rainy day fund approved by city council for use under specified circumstances.
• $25,000 of contractual obligations for capital projects.
• $50,000 unexpended proceeds of a tax required by law to be used for emergency 911 services.
• $550,000 to be used to fund government operations in the future.
Required: Prepare the fund balance section of the Balance Sheet.