Section A provides a list of the results of Allen-town’s analysis of its fund balances. Section B…

Section A provides a list of the results of Allen-town’s analysis of its fund balances. Section B provides a list of the possible classifications for reporting the items listed in Section A.Section A____1. A special revenue fund has $50,000 on which there are no constraints.____2. Allentown has set aside $1,000,000 in an emergency reserve fund. According to the town ordinance, funds can only be used from this fund with approval of two-thirds of the town council.____3. Allentown determined that the General Fund has $22,000 in inventory it should report.____4. Allentown issued bonds that sold at a premium. At management’s discretion the decision has been made to use the $100,000 premium to retire the debt.____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.Section Ba. Non-spendableb. Spendable—Restrictedc. Spendable—Committedd. Spendable—Assignede. Spendable—UnassignedRequiredUsing the choices provided in Section B, identify under what fund balance classification Allentown should report each of the dollar amounts listed in Section A.View Solution:
Section A provides a list of the results of Allen town s