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

question 36

Essay

Prepare journal entries to record the following grant-related transactions for a municipality's 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:

Single-Member Districts

Electoral districts that elect only one representative to a legislative body, typically by a simple majority vote.

Proportional Representation

An electoral system where parties gain seats in proportion to the number of votes cast for them, as opposed to a winner-take-all system.

Andrew Jackson

The seventh President of the United States (1829–1837) known for his populist approach, founding the Democratic Party, and policies leading to the Trail of Tears.

Democratic Party

One of the two major contemporary political parties in the United States, characteristically supporting liberal, progressive policies.