The Economic Development Special Revenue Fund budget was adopted by the city council. The adopted budget included estimated operating grant revenues of $930,000 and estimated investment income of $40,000. Appropriations of $945,000 were adopted for economic development programs.

A. Record the budget.

B. The city received a $1,500,000 economic development grant from the state’s Department of Economic Development. The grant cash was received and is to be used in certain specified efforts to attract new businesses to the city and surrounding area

C. The city purchased investments of $1,300,000. The grant requires that all investment income from the investment of the grant proceeds must be used for economic development

D. The city received interest on its investments, $55,000

E. The city incurred and vouchered $840,000 of economic development expenditures that qualify under the state grant program.

F. The city paid salaries of $75,000 to economic development personnel. The payment included $450 of accrued salaries payable from the prior year. The salaries expenditures qualify under the grant program.

G. The city sold investments costing $800,000 for $815,000

H. The city paid $800,000 on vouchers payable for economic development

I. The fair value of the investments of the Economic Development Special Revenue Fund at year end increased by $1,700. In addition, accrued interest on the investments at year end was $12,000

J. Accrued salaries payable at year end totaled $200

K. Grant revenues for the year were recorded (if not recorded earlier).

M. The budgetary accounts were closed at year end. (Close the budgetary accounts in the transactions columns.)

Answer rating: 100% (QA)

A Budget Operating grant revenues 930000 Investment income 40000 Appropriations for economic develop... View the full answer