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Problem 1 Use the provided information to complete the steps in the box below. The Cave Creek School District was notified that the federal government
Problem 1
Use the provided information to complete the steps in the box below.
The Cave Creek School District was notified that the federal government has awarded a $6,000,000 grant to finance a special program that the school had developed to teach math to a select group meeting specified criteria.
Required Steps
Record the following transactions in a Special Revenue Fund General Ledger (journal entry format):
Part 1
- The school district received the grant in cash on January 22, 2018.
- The school purchased 10 computers and related software for use in the program, $85,000.
- The school paid salaries for the three instructors who are assigned to the program, $115,000.
- The school purchased materials for students for the program, $1,550,000.
- December 31 is the end of the schools fiscal year. All of the foregoing expenditures qualify as expenditures payable from the grant resources.
Part 2
- Cash received to reimburse expenditures after they are incurred (journal entry format):
- Received a 1-year loan from the General Fund, $1,800,000.
- The school purchased 10 computers and related software for use in the program, $95,000.
- The school paid salaries for the three instructors who are assigned to the program, $112,000.
- The school purchased materials for students for the program, $1,020,000.
- The school filed for and received reimbursement of $1,100,000.
- As of year end, the school had filed for reimbursement for all but $10,000 of the expenditures. It will file for reimbursement for the remaining $10,000 of qualifying expenditures early in the next year. It should receive all amounts for which it has already filed within 45 days after year end. The remaining $10,000 probably will not be received until the end of the first quarter of the next year.
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