Entrepreneurs Consultants, a state agency, was established

to provide consulting services to small businesses. It main$-$

tains only a single general fund and accounts for its activities

on a modified accrual basis.

During its first month of operations, the association engaged

in$,$ or was affected by$,$ the following transactions and events:

It received an unassigned grant of $$100,000.$

It purchased five computers at $$2,000$ each.

It paid wages and salaries of $$6,000.$

Borrowed $24,000$ from the bank via a long$-$term note for the automobile.

It purchased the automobile for $$24,000.$

It made its first payment on the note$-$

interest of $$200.$

It destroyed one of its computers in an accident. The

computer was not insured.

b$.$ Prepare a balance sheet and a statement of reve

nues and expenditures for the general fund.

Assume the following account balance at the beginning of the month $($or year$)$

Cash $-650,000$

Fund Balance $-650,000$

Closing Journal Entries

Debit Credit

Grant Rev $100,000$

Loan Proceeds $24,000$

Fund Balance $124,000$

Fund Balance $40,200$

Computer Expenditure $10,000$

W & S Expenditure $6,000$

Auto Expenditure $24,000$

Interest Expenditure $200$

Journal Entries

Debit Credit

$1)$ Cash $100,000$

Grant Rev $100,000$

$2)$ Computer Expenditure $10,000$

Cash $10,000$

$3)$ Salaries and Wage Expense $6,000$

Cash $6,000$

$4)$ Cash $24,000$

Loan Proceeds $24,000$

$5)$ Automobiles Expenditure $24,000$

Cash $24,000$

$6)$ Interest Expenditure $200$

Cash $200$

$7)$ No Journal Entries