4-6. The City of Smithton applied for a competitive grant from the State government for park improvements such as upgrading hiking trails and bike paths. On May 1, 2014, the City was notified that it had been awarded a grant of $ 200,000 for the program, to be received in two installments on July 1, 2014, and July 1, 2015. The grant stipulates that $ 100,000 is for use in the each of the City’s fiscal years ending June 30, 2015 and June 30, 2016. Any amounts not expended during FY 2012 can be carried over for used in FY 2013. During FY 2015, the City expended $ 90,000 for park improvements from grant resources. Required: For the special revenue fund, provide the appropriate journal entries, if any, that would be made for the following: a. May 1, 2014, notification of grant approval. b. July 1, 2014, receipt of first installment of the grant. c. During FY 2014 to record the expenditure under the grant. d. July 1, 2015.
4-6. The City of Smithton applied for a competitive grant from the State government for park improvements such as upgrading hiking trails and bike paths. On May 1, 2014, the City was notified that it had been awarded a grant of $ 200,000 for the program, to be received in two installments on July 1, 2014, and July 1, 2015. The grant stipulates that $ 100,000 is for use in the each of the City’s fiscal years ending June 30, 2015 and June 30, 2016. Any amounts not expended during FY 2012 can be carried over for used in FY 2013. During FY 2015, the City expended $ 90,000 for park improvements from grant resources. Required: For the special revenue fund, provide the appropriate journal entries, if any, that would be made for the following: a. May 1, 2014, notification of grant approval. b. July 1, 2014, receipt of first installment of the grant. c. During FY 2014 to record the expenditure under the grant. d. July 1, 2015.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
4-6. The City of Smithton applied for a competitive grant from the State government for park improvements such as upgrading hiking trails and bike paths. On May 1, 2014, the City was notified that it had been awarded a grant of $ 200,000 for the program, to be received in two installments on July 1, 2014, and July 1, 2015. The grant stipulates that $ 100,000 is for use in the each of the City’s fiscal years ending June 30, 2015 and June 30, 2016. Any amounts not expended during FY 2012 can be carried over for used in FY 2013. During FY 2015, the City expended $ 90,000 for park improvements from grant resources.
Required: For the special revenue fund, provide the appropriate journal entries , if any, that would be made for the following:
a. May 1, 2014, notification of grant approval.
b. July 1, 2014, receipt of first installment of the grant.
c. During FY 2014 to record the expenditure under the grant. d. July 1, 2015.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education