Reference no: EM132716636

Tinsel Town has only two funds, the General Fund (GF), and a Capital\ Projects Fund (CPF). Summarized operating statements for each of the funds for fiscal 2019 are as follows:

                                                   GF               CPF           Total

Revenues                      $100                 $ --         $100
Expenditures                 89                       62            151
Bond proceeds                 --                  70              70
Increase in fund balance       11                 8           19
Beginning fund balance       52                   0          52
Ending fund balance            63                  8            71

Problem 1: Assume that all the expenditures in the Capital Projects Fund were capital outlays and that all the expenditures in the General Fund were for operations. Also, assume that revenues in the General Fund would be the same under the modified accrual and accrual basis of accounting. The total net position balance for Tinsel Town's governmental activities in the government-wide financial statements at the end of fiscal 2019 is:

Option 1: $63
Option 2: $43
Option 3: $68
Option 4: $75