Assume at the beginning of $2024$ the Village of Clemente Street and Highway Fund $($a special revenue fund$)$ has cash of $$36,000$ offset by assigned fund balance in the same amount.

During the year, the State notified the Village that $$500,000$ for the Street and Highway Fund will be awarded for work performed on several bridges over the next two years. The grant is a cost reimbursement arrangement $($no budget entry is necessary$).$

During the year, the Village signed contracts for bridge repairs that amounted to $$438,000.$

The bridge repairs were completed, and an invoice was received for $$435,000,$ of which $$348,000$ was paid in cash.

The special revenue fund reimbursed the General Fund for a payment the General Fund made on behalf of the Street and Highway Fund in the amount of $$1,800.$ This amount is not related to the bridge repairs under the state grant.

The state government paid the Village $$412,000$ on work completed under the grant before year$-$end.

Required:

Prepare the journal entries for the above transactions. Prepare Closing entries for year$-$end.

Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the special revenue fund.

Prepare a Balance Sheet.