Question

Return to question 1 On January 1, 2020, the first day of its fiscal year, Carter City received notification that a federal grant in the amount of $560,000 was approved. The grant was restricted for the payment of wages to teenagers for summer employment. The terms of the grant permitted reimbursement only after qualified expenditures have been made the grant could be used over a two- year period. The following data pertain to operations of the SUMMER EMPLOYMENT GRANT FUND, a special revenue fund of Carter City, during the year ended December 31, 2020: 2 points 1. The budget was recorded. It provided for Estimated Revenues for the year in the amount of $270,000, and for Appropriations in the amount of $270,000. 2. A temporary loan of $270,000 was received from the General Fund. 3. During the year, teenagers earned and were paid $261,000 under terms of the Summer Employment program. An additional $8,000 is accrued as payable on December 31. Recognize the receivable and revenue (include the $8,000 of wages payable). 4. Each month a properly documented request for reimbursement was sent to the federal government, checks for $267,000 were received. 5. $250,000 was repaid to the General Fund. 6. Necessary closing entries were made. Prepare journal entries for the year ended December 31 in the accounts of the Summer Employment Grant Fund (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Transaction Credit Answer is not complete. General Journal Estimated Revenues Control Appropriations Control Debit 270,000 1 01 270,000 2 02 270,000 Cash Due to General Fund >> 270,000 3 За > Expenditures Control Cash Accrued Wages Payable 8,000 4 3b Grants Receivable-Federal Government Revenues Control > 5 04 No Transaction Recorded 6 05 No Transaction Recorded

Answer 1

Answer :-

CARTER CITY

SUMMER EMPLOYMENT GRANT FUND

GENERAL JOURNAL

S. No.	Account Titles and Explanation	Debit $	Credit $
1	Estimated Revenue Control	$280,000
	Appropriation Control		$280,000
	To Record Estimated Revenue
2	Cash	$280,000
	Due to General Fund		$280,000
	To Reccord Entry For Loan Received
3.a.	Expendture Control	$269,000
	Cash		$261,000
	Accrued Wages Payable		$8,000
	To Record Payment Under Sumer Empoyment Programme
3.a.	Grant Receivable	$269,000
	Revenue Control		$269,000
	To Record Entry for Grant Receivable
4	Cash	$267,000
	Grant Receivable		$267,000
	To Record Grant Received
5	General Fund	$250,000
	Cash		$250,000
	To Record Entry for repayment to general Fund
6	Appropriation Control	$280,000
	Estimate Revenue Control		$280,000
	To Record Closing Entry
6.b.	Revenue Control	$269,000
	Unreserved fund Balance		$269,000
	To Record Closing Entry