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As the newly-hired assistant controller for the City of Lancaster, you are asked to determine the amount of available funds. After consulting your assistant and the city treasurer, you begin to analyze the following information. (in thousands) Dr (Cr) Cash in bank $100,000 Estimated revenue 5,000,000 Budgetary deficit 150,000 Revenue (4,600,000) Expenditures 4,550,000 Accounts payable (500,000) Fund balance-assigned* (350,000) Fund balance-unassigned (400,000) *Assigned fund balance consists of outstanding encumbrances. Calculate the funds available to be encumbered. $Answer

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Answer:

Explanation:

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Answer:

Available funds  = $5,550,000

Explanation:

Given Data:

Cash in bank = $100,000

Estimated revenue = $5,000,000

Budgetary deficit 150,000

Revenue (4,600,000)

Expenditures 4,550,000

Accounts payable (500,000)

Fund balance-assigned* (350,000)

Fund balance-unassigned (400,000)

The available funds can is calculated using the table below;

      Items                             Less                              Calculated funds

Cash in bank                           -                                     $100,000

Estimated revenue                  -                                    $5,000,000

Budgetary deficit                $150,000                                  -

Revenue                                 -                                      $4,600,000

Expenditures                      $4,550,000                              -

Accounts payable                   -                                      $500,000

Fund balance-assigned        $350,000                           -

Fund balance-unassigned           -                                 $400,000

Total:                                    $5,050,000                      $10,600,000

Available fun can be calculated as;

Available Funds  = Calculated funds -less

                            = 10,600,000 - 5,050,000

                            =$5,550,000