Fund Balance Classifications. $($LO$2-3)$ Section A provides a list of the results of Allentown$$s analysis of its$$governmental fund balances at its fiscal year end. Section B provides a list of the possible classifications for reporting the items listed in Section A$.$

Section A

$1.$ At year$-$end a special revenue fund has a $$50,000$ fund balance on which there are no constraints.

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$2.$ Allentown has a $$1,000,000$ emergency reserve fund it set aside. According to the town ordinance, funds can only be used from this fund with approval of two$-$thirds of the governing body, which is the town council.

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$3.$ Allentown determined that the General Fund has $$22,000$ in inventory it should report on its fund financial statements.

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$4.$ Allentown issued bonds that sold at a premium. Using the authority allowed her by the town council, the city manager made the decision to set aside the $$100,000$ premium to pay the principal on the debt when it comes due in a future period.

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$5.$ The federal government has provided a grant for emergency housing assistance that can only be used for low$-$income families. Allentown determined $$250,000$ of the grant funds remained at year$-$end.

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$6.$ Allentown had a balance in its prepaid insurance account of $$464,000$ at the end of the fiscal year.

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$7.$ At the end of the reporting period, Allentown$$s General Fund statement of revenues, expenditures, and changes in fund balances reported a net change in fund balances of $$154,238.$

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$8.$ Allentown$$s mayor indicated that he was setting aside $$25,000$ of funds for the future purchase of land for a town park.

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$9.$ The$$Allentown council passed an ordinance requiring that $5\%$ of the town$$s sales tax revenue be set aside for economic development; this year that amount was $$24,650.$

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$10.$The capital projects fund ended the reporting period with a negative fund balance.

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Section B

a$.$ Nonspendable

b$.$ Restricted

c$.$ Committed

d$.$ Assigned

Unassigned