Question

Some of a county government’s account balances at November 30, 2019 appear below. The government’s fiscal year ends June 30, 2020.

Cash in bank	$100,000
Estimated revenues	20,000,000
Budgetary deficit	500,000
Revenues	8,000,000
Expenditures	7,600,000
Fund balanced-assigned	75,000
Fund balanced-unassigned	300,000

The assigned fund balance relates entirely to outstanding encumbrances. How much does the government have available to spend for the remainder of fiscal 2020?

$ 300,000

$ 325,000

$12,325,000

$12,825,000

Answer 1

Answer is optionD) $ 12,825,000

Appropriation = estimated revenue + budget deficit

= 20,000,000 + 500,000

= 20,500,000

Less expenditure =( 7,600,000)

Less: Fund balanced: assigned = ( 75,000)

Fund available to spend = $ 12,825,000