During FY 2020, the City of Smithville received notification that the state government would send $150,000 to

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Question:

During FY 2020, the City of Smithville received notification that the state government would send $150,000 to it at the beginning of the next fiscal year. Based on the city’s definition of “available for use,” the city considers the funds available to use for Public Safety’s operating activities in the current reporting period. The budget for the current year included this amount as “Intergovernmental Revenue.”

Required:

Record this transaction as a receivable and revenue in the General Fund and governmental activities journals.