| Course | AC450 Advanced Accounting |
|---|---|
| Unit | Unit 10 |
| Paper type | Fund financial statements |
| Length | About 570 words, 5 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | BS in Accounting |
| Updated | October 2026 |
Free sample paper for AC450 Unit 10
Fund Balances Up $2,740,000, Net Position Down $350,000: A Unit 10 Set of Governmental Fund Statements
[Student Name]
Purdue University Global
AC450: Advanced Accounting
Unit 10 Fund Financial Statements
[Instructor Name]
[Date]
The town and every figure are composite; the GASB statements and textbook cited are real.
The Funds
Ashford's governmental funds are the general fund; a street maintenance fund that receives the town's share of state fuel taxes, which may be spent only on streets; a debt service fund that pays principal and interest on the town's bonds; and a capital projects fund created to build the new fire station.
The Operating Statement for the Four Funds
General fund: revenues of $14,200,000 from property taxes, sales taxes, fees and state aid; expenditures of $13,300,000 for police, administration, parks and the existing fire department; transfers out of $1,000,000, of which $800,000 went to the capital projects fund and $200,000 to the debt service fund. Net change: a decrease of $100,000. Fund balance falls from $4,300,000 to $4,200,000.
Capital projects fund: bond proceeds of $6,000,000 reported as another financing source, not as revenue, plus the $800,000 transfer in; expenditures of $4,100,000 for design and construction to date. Fund balance rises from zero to $2,700,000.
Street maintenance fund: fuel-tax revenue exceeds street spending by $90,000. Debt service fund: property taxes dedicated to debt plus the $200,000 transfer exceed $600,000 of principal and $380,000 of interest by $50,000.
Total change across the four funds: an increase of $2,740,000.
The capital projects fund reports its $6,000,000 of bond proceeds as a financing source, so its fund balance rises, but the town now owes $6,000,000 more, which is why a rising total fund balance in a borrowing year proves nothing by itself.
Balance Sheet and General Fund Balance Classification
The general fund's $4,200,000 is classified under GASB Statement No. 54: $150,000 nonspendable, mainly prepaid insurance; $600,000 committed by council resolution to a revaluation project; $450,000 assigned by the finance director to next year's budget gap; and $3,000,000 unassigned (Governmental Accounting Standards Board, 2009). Committed amounts require formal action by the council to change, while assigned amounts reflect an intent set by an official the council has authorized. The street maintenance, debt service and capital projects balances are restricted, by state law, bond covenants and the bond ordinance respectively.
Reconciliation to Net Position
Fund statements track spendable resources under modified accrual; government-wide statements measure all economic resources on the full accrual basis (Governmental Accounting Standards Board, 1999). Starting from the $2,740,000 increase in fund balances: add $4,100,000 of capital outlay, which is an asset in the government-wide statements; subtract $1,250,000 of depreciation; subtract $6,000,000 of bond proceeds, which are a liability; add $600,000 of principal repaid; subtract $40,000 for the increase in accrued interest; subtract $420,000 for pension and compensated absence costs above what was paid; and subtract $80,000 for the decline in property taxes earned but not yet available. The result is a decrease in net position of $350,000.
What the Council Should Read
The general fund, which pays for daily services, ran a small deficit after transfers. The total fund balance increase comes almost entirely from unspent bond proceeds. Net position, which counts the debt and the cost of using up the town's assets, fell. A surplus in governmental funds, especially in a borrowing year, measures cash available to spend, not whether the town covered its full costs (Hoyle et al., 2021).
References
Governmental Accounting Standards Board. (1999). Statement No. 34: Basic financial statements, and management's discussion and analysis, for state and local governments. GASB.
Governmental Accounting Standards Board. (2009). Statement No. 54: Fund balance reporting and governmental fund type definitions. GASB.
Hoyle, J. B., Schaefer, T. F., & Doupnik, T. S. (2021). Advanced accounting (14th ed.). McGraw Hill.
The Purdue Global AC450 Unit 10 instructions
The final AC450 unit asks you to prepare governmental fund financial statements and say what each figure can and cannot tell a reader. Describe each fund and the purpose that restricts it. Prepare the operating statement in columnar form: revenues, expenditures, other financing sources and uses such as bond proceeds and transfers, and net change in fund balance for each fund and in total. Classify general fund balance under GASB Statement No. 54 into nonspendable, restricted, committed, assigned and unassigned, and explain the authority behind each. Then reconcile the total change in fund balances to the change in government-wide net position, item by item, explaining why modified accrual and full accrual differ. Close with what a council should conclude from each figure. Cite the GASB statements and an advanced accounting text in APA 7.
How the AC 450 Unit 10 example is put together
The sample describes Ashford's four funds. The operating statement gives the general fund $14,200,000 of revenue, $13,300,000 of expenditures and $1,000,000 of transfers out, ending at $4,200,000; the capital projects fund $6,000,000 of bond proceeds, an $800,000 transfer and $4,100,000 of spending, ending at $2,700,000; and small increases in the street and debt service funds. The highlighted sentence explains why bond proceeds raise fund balance while the town owes more. The general fund's balance is classified into $150,000, $600,000, $450,000 and $3,000,000 under GASB 54, with the committed and assigned distinction explained. The reconciliation moves from $2,740,000 to a $350,000 decrease through seven items, citing GASB 34. A closing section tells the council what each figure measures, citing Hoyle and colleagues.
Reading the AC450 Unit 10 grading rubric
AC450 fund statement assignments are graded on correct classification, correct format and a reconciliation that explains the two measurement focuses. Bond proceeds must be reported as other financing sources, not revenue, and transfers must balance across funds. Graders check that GASB 54 categories are applied with the right authority behind each, especially the line between committed and assigned. The reconciliation must close exactly and each item must be explained by the difference between current financial resources and economic resources. Explaining what a council should read from each figure shows understanding of why governments report both. Fund descriptions that state restrictions add credit. Columnar presentation and APA 7 citations to the GASB statements finish the final grade of the Purdue Global term.
Common AC450 Unit 10 mistakes, and how to avoid them
Many Unit 10 statements report bond proceeds as revenue. Others leave transfers unbalanced, so one fund's transfer out has no matching transfer in. Fund balance categories are assigned by guesswork, with council-approved limits called assigned. Capital outlay is depreciated in the fund statements. The reconciliation stops short or leaves a difference. A rising fund balance is read as a surplus without mentioning the debt behind it. If your problem is a nonprofit's net asset statements or a different set of funds, our writers can prepare the statements and reconciliation from your trial balances.
Get an AC450 Unit 10 example written to your instructions
Fund problems arrive in many shapes, from a single general fund to a full set with a reconciliation, so the Unit 10 instructions decide the scope; send them with the transactions or trial balances and the rubric. A first custom set is free, and statements, classifications and reconciliation return inside 24-48h. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
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AC450 Unit 10 questions, answered
Why do fund statements and government-wide statements disagree?
They measure different things. Governmental fund statements track current financial resources on the modified accrual basis, which is why a building purchase is an expenditure and a bond issue a financing source. Government-wide statements use full accrual and economic resources, where the building is an asset that depreciates and the bond is a liability. The required reconciliation explains the gap line by line.
What makes an amount committed rather than assigned?
The level of authority behind the limit. Committed amounts are constrained by formal action of the government's highest decision-making body, here a council resolution, and only another formal action can release them. Assigned amounts reflect an intended use set by a body or official the council has authorized, such as the finance director. The town's 600,000 vehicle reserve is committed because the council voted it.
Can the statements follow the funds in my own problem?
Yes. Include the fund list, the transactions or trial balances, any availability period the problem gives, and the rubric. The statements come back in the columnar format your course uses, with fund balance classified and, where the instructions ask for it, the reconciliation to net position, each line carrying a short note on why it belongs there.
Where can I find a free AC450 Unit 10 sample paper?
This page holds a complete AC450 Unit 10 set of governmental fund financial statements for a composite town, with an operating statement, GASB 54 classification, a reconciliation to net position and APA 7 references.
Why did net position fall while fund balances rose in AC450 Unit 10?
Fund statements count $6,000,000 of bond proceeds as a resource and $4,100,000 of construction as spending. Government-wide statements record the debt, capitalize the construction and charge depreciation and accruals, giving a $350,000 decrease.