Assume the Federal Interstate Commission began the fiscal year with the following account balances:

1. Congress passed a spending bill providing $12,000,000 to fund the agency€™s operations for the year.
2. During the first quarter the commission processed the following items for payment (all items were paid by Treasury in the first quarter).
Beginning balances
Accounts payable......$ 126,000
Wages payable..........79,000
Salaries and benefits.......500,000
Supplies............500,000
Contracted services.........1,000,000
Grants...............1,000,000
Equipment..............500,000
Total...............$3,705,000
3. Unpaid wages at the end of the quarter totaled $25,000.
4. In addition to the items paid in item 2, the commission received supplies of $12,000 and contracted services of $70,000 that are to be processed for payment in January.
5. Unused supplies on hand totaled $209,000 at December 31.
6. Depreciation for the quarter is $60,000.
Required:
a. Prepare journal entries in the proprietary accounts for the events described above.
b. Prepare a Statement of Changes in Net Position for the quarter ended
December 31. (Assume the amount of appropriations used is $3,607,000 and use the format appearing in Illustration 14€“11.)
c. Prepare a Balance Sheet as of December31.

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FEDERAL INTERSTATE COMMISSION TRIAL BALANCE October 1, 2012 Deblts Credits Fund Balance with Treasury Supplies Equipment Accumulated Depredation 750,000 135,000 1,300,000 480,000 126,000 79,000 1,500,000 Wages Payable Cumulative Results of Operations