P4-33. (Accounting and financial reporting cycle) To improve its recreation facilities and to reduce its unemployment rate, Empire State created the Ticon- deroga Trails Special Revenue Fund. By law, all traffic fines collected by the state police were directed to be deposited into the Ticonderoga Trails Special Revenue Fund, and used only to pay for the supplies and salaries of individuals employed to create new hiking trails in Ticonderoga State Park. The Fund had the following transactions and events during calendar year 2018. Prepare journal entries to record these transactions and events, and prepare a statement of revenues, expenditures, and changes in fund balance. 1. The legislature adopted and the governor approved a budget. Estimated traffic fine revenues were $1,500,000. Appropriations were for parks and recreation program salaries of $1,300,000 and for parks and recreation program supplies of $180,000. 2. Received traffic fine revenues of $1,520,000 during the year. 3. Paid salaries of $1,250,000 during the year. 4. Incurred a liability of $30,000 for salaries earned by employees during the last work week in De- cember that will be paid early January 2019. 5. Issued purchase orders for supplies totaling $170,000. 6. Received deliveries of all the supplies ordered in the previous transaction. The supplies were in- spected and vouchers were prepared for payment. Then, the invoices were paid