The following relate to three grants that the town of College Hills received from the state during its fiscal year ending December 31, 2015. Prepare journal entries to record the three grants.
1. A cash grant of $200,000 that must be used to repair roads
2. $150,000 in cash of a total grant of $200,000 to reimburse the town for actual expenditures incurred in repairing roads; during the year the town incurred $150,000 in allowable repair costs
3. A cash entitlement grant of $200,000 that is intended to supplement the town’s 2016 budget and must be expended in that year