Question

On January 1, 2020, the first day of its fiscal year, Carter City received notification that a federal grant in the amount of $615,000 was approved. The grant was restricted for the payment of wages to teenagers for summer employment. The terms of the grant permitted reimbursement only after qualified expenditures have been made; the grant could be used over a two-year period. The following data pertain to operations of the SUMMER EMPLOYMENT GRANT FUND, a special revenue fund of Carter City, during the year ended December 31, 2020: The budget was recorded. It provided for Estimated Revenues for the year in the amount of $307,500, and for Appropriations in the amount of $307,500. A temporary loan of $307,500 was received from the General Fund. During the year, teenagers earned and were paid $292,550 under terms of the Summer Employment program. An additional $10,750 is accrued as payable on December 31. Recognize the receivable and revenue (include the $10,750 of wages payable). Each month a properly documented request for reimbursement was sent to the federal government; checks for $298,750 were received. $267,050 was repaid to the General Fund. Necessary closing entries were made.

Answer 1

The question is about the operations of the SUMMER EMPLOYMENT GRANT FUND in Carter City. The question provides data and information regarding the budget, receipts, reimbursements, and payments made from the fund. The task is to recognize the receivable and revenue.

Step-by-step explanation:

The subject of the question is the operations of the SUMMER EMPLOYMENT GRANT FUND, which is a special revenue fund of Carter City. The question provides data and information regarding the budget, receipts, reimbursements, and payments made from the fund. The task is to recognize the receivable and revenue.

Based on the data provided, the grant fund received a federal grant of $615,000 on January 1, 2020. Throughout the year, teenagers earned and were paid $292,550 under the program, with an additional $10,750 accrued as payable on December 31. Each month, reimbursement requests were sent to the federal government, and checks totaling $298,750 were received. $267,050 of the received amount was repaid to the General Fund. Necessary closing entries were made to account for these transactions.