Bertram County maintains a fund accounting system. Nevertheless, its comptroller (who recently retired from a position in private industry) prepared the following balance sheet (in millions):

The fund balance restricted for debt service represents entirely principal (not interest) on the bonds payable.
1. Recast the balance sheet, as best you can, into separate balance sheets for each of the funds that are apparently maintained by the county. Assume that the county uses a modified accrual basis of accounting that excludes recognition in its funds of both capital assets and long-term debt. Assume also that cash and investments are divided among the funds in proportion to fund balances.

2. In your opinion, which of the two presentations gives the reader a more complete picture of the county€™s financial status? Why? Which presentation is easier tounderstand?

Assets Investments Construction in progress Capital assets S 600 1,800 500 1,200 Total assets Liahilities and fund balance Bonds payable Fund balance $1,700 Restricted for capital projects 600 Restricted for debt service 200 1,600 2,400 Unassigned Total liabilities and fund balance 2 Tonn of Paris Balance Sheet Governmental Funds (in millions) Hotel Tax Bride Bond (Special (Capital (Debt Endowment General Revenu) Projects) Service) (Permanent) Fund Fund Fund Fund Fund Totals Assets Cash Investments Due from other funds S 38 105 20 60 120 $200 S 35 480 46 S561 $340 136 39 $515 S 10 960 S 443 1,741 205 $2,389 Total assets $143 $970 Liabilities and fund balances Accounts payable Due to other funds Fund balances 205 (70) 205 2,176 20056515 970 Total liabilities and fund balances $143 S56 1 $515 970