Accounting/Journal Entries Homework
On January 1, 2009, the first day of its fiscal year, the City of Carter received notification that
A federal grant in the amount of $750,000 was approved. The grant was restricted for the payment
Of wages to teenagers for summer and after-school employment. The terms of the grant permitted
Reimbursement only after payment was made; the grant could be used over a three-year period.
The following data pertain to operations of the Youth Employment Grant Fund, a special revenue
Fund of the City of Carter, during the year ended December 31, 2009.
Show entries in general journal form to record the following events and transactions in the
Accounts of the Youth Employment Grant Fund:
1. The budget was recorded. It provided for Estimated Revenues for the year in the amount of
$250,000, and for Appropriations in the amount of $250,000.
2. A temporary loan of $250,000 was received from the General Fund.
3. During the year, teenagers earned and were paid $230,000 under the terms of the Youth
Employment program. An additional $11,000 is accrued as payable on December 31. Recognize
The receivable and revenue (include the $11,000 wages payable).
4. Each month a properly documented request for reimbursement was sent to the federal
Government; checks for $215,000 were received.
5. The temporary loan from the General Fund was partially repaid, in the amount of $150,000.
6. Necessary closing entries were made.
