Question

The Sinking Creek School District was notified that the federal government has awarded it a $5,000,000 grant to finance a special program that the school had developed to teach math to a select group meeting specified criteria. Record the following transactions in a Special Revenue Fund General Ledger.
Situation A. Cash received in advance of incurring expenditures.
1. The school district received the grant in cash on January 22, 20X8.
2. The school purchased 10 computers and related software for use in the program, $75,000.
3. The school paid salaries for the three instructors who are assigned to the program, $112,000.
4. The school purchased materials for students for the program, $1,420,000.
5. December 31 is the end of the school’s fiscal year. All of the foregoing expenditures qualify as expenditures payable from the grant resources.
Situation B. Cash received to reimburse expenditures after they are incurred.
1. Received a 1-year loan from the General Fund, $1,700,000.
2. The school purchased 10 computers and related software for use in the program, $75,000.
3. The school paid salaries for the three instructors who are assigned to the program, $112,000.
4. The school purchased materials for students for the program, $1,420,000.
5. The school filed for and received reimbursement of $1,300,000.
6. As of year-end, the school had filed for reimbursement for all but $30,000 of the expenditures. It will file for reimbursement for the remaining $30,000 of qualifying expenditures early in the next year. It should receive all amounts for which it has already filed within 45 days after year end. The remaining $30,000 probably will not be received until the end of the first quarter of the next year.



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  • CreatedOctober 25, 2014
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