In 2013, Grand City established a special revenue fund to account for acquisitions of wildlife by the

Question:

In 2013, Grand City established a special revenue fund to account for acquisitions of wildlife by the city zoo. Financing for the project includes:
Federal grant $ 900,000
General fund transfers 900,000
Total$1.800.000
During 2013, the following occurred:
1. Cash from the general fund and federal grant was received as scheduled.
2. Investments are purchased for $320,000 in cash.
3. Contracts for $1,750,000 for the acquisition of wildlife were signed. Animals, reptiles, and birds were delivered, and Grand City was billed for $1,750,000.
4. Investments yielded $18,000 in revenues. The investments were liquidated at cost.
5. Bills remaining to be paid at year-end totaled $80,000.
6. Any remaining resources were reclassified for future transfer to the general fund.
The federal grant resources are restricted, while the general fund transfers and investment income are committed resources. City policy is to spend restricted resources first. The special revenue fund does not use budgetary accounts.
Required
a. Prepare all 2013 journal entries and closing entries for the special revenue fund.
b. Prepare the for the special revenue fund as of December 31, 2013. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...