In 2023, Culebra City created a special revenue fund to help to help create transportation for citizens. No budget is recorded in this fund. Only prepared alt transaction for Special Revenue Fund. Beginning Balance $200,000 in cash and Fund Balance Beginning for $200,000.

a. During the first year of special revenue fund operations revenues from the transportation services totaled $998,000. Of this amount, $900,000 has been received is cash and the remainder will be received within 60 days of the end of the fiscal yeon for the grant; do not reimbursement this fund to the Transportation Department

b. During the year, the Culebra City signed contract for transportation for $500,000.

c During the year, Puerto Rico Island notified the Culebra City that $990,000 for this special revenue fund. Puerto Rico Island (general fund) assigned the grant (second grant) for uses the transportation special revenues fund; the grant is a cost reimbursement arrangement.

d. Received invoice for transactions b for $500,000, of which 50% was paid in cash.

e. Expenditures salaries for $400,000 was recorded, of this amount $120,000 was paid and the different record in salaries payable.

f. Record other expenditures for $400,000 on account. (Culebra City do not paid other expenditures)

9. Received another cash for transaction a.

h. Received $700,000 in cash of the Puerto Rico Island (General Fund) (record in other revenues).

i. Paid all payable.

j. Receives cash for the second grant (transaction c).

Instructions:

1. Prepare the journal entries for transaction occurred in the Special Revenues Funds of Culebra City (above).

2. Prepare the closing entries for year ended.

3. What is the ending balance of the cash?

4. Prepare the Statement of Revenues, Expenditures and Changes in Fund Balance for the Special Revenues Fund for Transportation for the fiscal year ended June 30, 2023.

Answer rating: 100% (QA)

1 Journal Entries a To record the cash and revenue received for transportation services Cash 900000 Accounts Receivable 98000 Revenue 998000 b To reco... View the full answer