Pass-through Agency Funds- Evergreen County acts as the disbursing agent for a state grant for the performing arts. The state is responsible for determining which local governments are eligible for the grant mney and for following up to ensure that the recipients comply with the requirements to the grant. The county receives the grant funds and disburses them according to the schedule provided by the state. When the county was asked to participate, the county's attorney was concered that the county might be held responsible for any disallowed costs. The state agreed to accept responsibility for any disallowed costs. The state agreed to accept responsibilty for any disallowed costs, so the county decided to act as the agent for the state for this grant. The schedule for the grant funds for 2017 is shown below: City of Boulder-$2,100,000 Aspen Township-$1,400,000 Snowton-$900,000 Firtree Village-$600,000 Total-$5,000,000 Required:

a. Prepare the general journal entries necessary to record Evergreen County's receipt of the money on December 31, 2017 (the end of its fiscal year) and disbursement of the grant funds on January 2, 2018.

b. Prepare the general journal entries reuired to record Aspen Township's receipt of the funds; assume that funds are to be used to construct a new performing arts center and all time and eligibility requirements have been met.

c. Since the county received the funds prior to its fiscal year-end, but didn't disburse them until after its fiscal year-end, how would the activities related to the grant be reported in the county's financial statements.