Reference no: EM132958233

Problem 1: The following information pertain to the Town of Blue Forest for their Capital Projects Fund: 1) Encumbrances, $3,000,000; 2) Capital outlay expenditures, $2,800,000; 3) Revenues, $10,200,000; 4) Proceeds of bonds, $1,000,000; 5) Retirement of Bond anticipation notes, $50,000; and 6) Transfers to Debt Service Fund, $55,000. The change in town's Capital Projects Fund fund balance for the year is a

Option 1: $7,400,000 decrease.

Option 2: $7,400,000 increase.

Option 3: $5,345,000 increase.

Option 4: $8,295,000 increase.

Option 5: $8,295,000 decrease.

Option 6: $5,345,000 decrease.