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Question - A government health care district incorporates its budget in its accounting system and encumbers all purchase orders and contracts. Prior to the start of the year, the governing board adopted a budget in which agency revenues were estimated at $5,600 and expenditures of $5,550 were appropriated. During the year, the following transactions incurred: the government health care district collected $5,500 in fees, grants, taxes, and other revenues.
It ordered goods and services for $3,000.
It received and paid for $2,800 of goods and services that had been previously encumbered. It expects to receive the remaining $200 in the following year.
It incurred $2500 in other expenditures for goods and services that had not been encumbered.
Required - What is total fund balance at year end?
a. $500
b. $300
c. $200
d. None of above
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