0132753065.pdf

2. Needthejournalentries:
4. 1.Thecityreceiveda$1,500,000economicdevelopmentgrantfromthestatesDepartmentofEconomicDevelopment.Thegrantcashwasreceivedandistobeusedincertainspecifiedeffortstoattractnewbusinessestothecityandsurroundingarea.

2.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.

1. 3. The city received interest on its investments, $55,000.
2. 4. The city incurred and vouchered $840,000 of economic development expenditures that qualify under the state grant program.
3. 5. 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.
4. 6. The city sold investments costing $800,000 for $815,000.
5. 7. The city paid $800,000 on vouchers payable for economic development.
6. 8. 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.
7. 9. Accrued salaries payable at year end totaled $200.