The City of Katerah Maintains Its Books and Records in a Manner

question 22

Essay

The City of Katerah maintains its books and records in a manner that facilitates the preparation of fund financial statements. Prepare all necessary journal entries to record the city's revenues from the following transactions for the year ended December 31, 2017.
a.) On January 15, the city received notification that it had been awarded a $300,000 federal grant to assist in the operation of its "Meals on Wheels" program. The federal government expects to send the cash in about three months. This is not a reimbursement type grant and all eligibility requirements have been met.
b.) In February the city spent $31,000 on "Meals on Wheels."
c.) In March, fines of $1,800 were issued for parking tickets. Payment must be made within 30 days, when the city has an enforceable legal claim to the amounts.
d.) In April, the city received the $300,000 grant from the federal government.
e.) In April, the city received $1,200 cash in payment of parking tickets issued in March. In addition, $100 of tickets was contested and court dates have been set. Also, the city expects another that $100 of tickets will be uncollectible but the remaining amounts will be paid eventually.
f.) Restaurant licenses are issued for a one-year period, from July 1 to June 30. The license fees are used to pay restaurant inspectors. In June, the city received $11,000 in restaurant license fees.

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Definitions:

Licence

A grant of permission to do something that, without such permission, would be illegal, a trespass, or a tort.

Easement

A right to use the property of another, usually for a particular purpose.

Impossible Living

A term not generally recognized in standard discourse; appears to refer to conditions under which normal life or habitation is extremely difficult.

Lease Terminated

The end of a lease agreement, either through mutual agreement, by reaching its natural expiration, or through early termination under specific conditions.