Question

ework Savod Help Save & CH On January 1, 2020, the first day of its fiscal year, Carter City received notification that a federal grant in the amount of $625,000 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 1. The budget was recorded. It provided for Estimated Revenues for the year in the amount of $312,500, and for Appropriations in the amount of $312.500. 2. A temporary loan of $312,500 was received from the General Fund. 3. During the year, teenagers earned and were paid $296,650 under terms of the Summer Employment program. An additional $11,250 is accrued as payable on December 31. Recognize the receivable and revenue (include the $11,250 of wages payable). 4. Each month a properly documented request for reimbursement was sent to the federal government; checks for $303,250 were received 5.8270150 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.) View transaction list Journal entry worksheet

Answer 1

Solution:

CARTER CITY

SUMMER EMPLOYMENT GRANT FUND

GENERAL JOURNAL

		Debits	Credits
1.	Estimated Revenues Control       Appropriations Control	312,500	312,500
2.	Cash       Due to General Fund	312,500	312,500
3.	Expenditures Control       Cash         Accrued Wages Payable	307,900	296,650 11,250
	Grants Receivable-Federal Government       Revenues Control	307,900	307,900
4. 5.	Cash       Grants Receivable-Federal        Government Due to General Fund          Cash	303,250 270,150	303,250 270,150
6.	Appropriations Control       Estimated Revenues Control	312,500	312,500
	Revenues Control        Unreserved Fund Balance       Expenditures Control	307,900 0	307,900