Beginning and Ending Fund Balances. The following information is provided about the Village of Wymettes General Fund

Question:

Beginning and Ending Fund Balances. The following information is provided about the Village of Wymette’s General Fund operating statement and budgetary accounts for the fiscal year ended June 30, 2010.

Estimated revenues $3,150,000

Revenues 3,190,000

Appropriations 3,185,000

Expenditures 3,175,000

Fund balance (beginning of year) 580,000

Budgetary fund balance (after FY 2010

budget was recorded) (35,000)

Required

a. Did the Village of Wymette engage in imprudent budgeting practice by authorizing a greater amount of expenditures than revenues estimated for the year, or potentially violate village or state balanced-budget laws?

b. Calculate the end-of-year balances for the Fund Balance and Budgetary Fund Balance accounts that would be reported on the Village’s balance sheet prepared as of June 30, 2010. Show all necessary work.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...