Question
could someone please help me this homework question and explain to me. thank you Special Revenue fund in 2016, Grand city established a special revenue
could someone please help me this homework question and explain to me. thank you
Special Revenue fund in 2016, Grand city established a special revenue fund to account for acquisitions of wildlife by the city zoo.
During 2016, the following occured.
1. cash of $ 800,000 was transferred from the general fund and a federal grant of $800,000 was received.
2. Investments were purchased for $600,000 in cash
3. contracts for $1,200,000 for the acquisition of wildlife were signed. Animals, reptiles, and birds were delivered, and Grand city was billed for $ 1,200,000
4. Investments yielded $30,000 in Revenues. the investments were liquidated at cost.
5. Wildlife contract bills totaling $1,100,000 were paid.
6. Resources of $400,000 were reclassified for future transfer to the general fund.
Required
a) Prepare all 2016 journal entries and closing entries for the special revenue fund.
b) prepare the balance sheet for the special revenue fund as of December 31, 2016.
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