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:

Adaptation

The process of adjusting or changing to fit new conditions or environments.

Creativity

The capacity to produce new ideas, insights, inventions, products, or artistic objects that are considered to be unique, useful, and of value to others.

Engineering Problem

A challenge or issue that requires technical and scientific knowledge to solve, often encountered in the field of engineering.

Grit

The perseverance and passion for long-term goals.