Prepare Journal Entries to Record the Following Grant-Related Transactions for a Municipality

question 9

Essay

Prepare journal entries to record the following grant-related transactions for a municipality special revenue fund.
1.Special Revenue Fund awarded an operating grant from the state,$2,500,000 (cash will be received after qualified expenditures are made).
2.Special Revenue Fund received funds of $1,600,000,temporarily transferred from the General Fund.
3.Incurred qualifying expenditures on the state grant program of $1,600,000 and paid them with funds temporarily transferred from the General Fund.
4.Received a federal grant to finance planting of trees in city,$4,500,000 (cash received in advance).
5.Incurred and paid cost of $3,000,000 for planting 10,000 trees in city.

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Definitions:

Mildly Disappointing Information

Information that falls slightly short of expectations, causing a minor sense of letdown or dissatisfaction.

Positive Message

Communication that conveys good news, affirmative information, or a positive outcome.

Routine Requests

Standard inquiries or appeals that are made regularly within the context of business or professional communication.

Potential Sale

An opportunity that might result in the purchase of goods or services.