Reference no: EM132687041

Question - A government health care district incorporates its budget in its accounting system and encumbers all purchase orders and contracts. Prior to the start of the year, the governing board adopted a budget in which agency revenues were estimated at $5,600 and expenditures of $5,550 were appropriated. During the year, the following transactions incurred: the government health care district collected $5,500 in fees, grants, taxes, and other revenues.

It ordered goods and services for $3,000.

It received and paid for $2,800 of goods and services that had been previously encumbered. It expects to receive the remaining $200 in the following year.

It incurred $2500 in other expenditures for goods and services that had not been encumbered.

Required - What is total fund balance at year end?

a. $500

b. $300

c. $200

d. None of above