The beginning balances as of 1/1/2017 for the City of Monroe's Special Revenue Fund are listed below. The City follows the modified accrual accounting method for its special revenue fund journal entries and financial statements. The following steps are required for this project.

Beginning balances: Cash $23,000; Investment $59,000; Due from State Government $107,000; Accounts Payable $9,000; Total Fund Balance $180,000

Step 1) Record journal entries for the transactions below for FY2017 in Tab #1.

Step 2) Create a trial balance as of 12/31/2017 in Tab #1. Exclude any budgetary accounts from the trial balance.

Step 3) Record the appropriate closing entries and complete the Fund Balance Table in Tab #2. Outstanding encumbrances at year end are classified as Assigned Fund Balance and all remaining net resources are classified as Restricted Fund Balance.

Step 4) Prepare the Statement of Revenue, Expenditures and Changes in Fund Balance (Tab #3) and the Balance Sheet (Tab #4) for the Special Revenue Fund as of 12/31/2017.

JE?1.The state government notified the City that $1,065,000 will be available for street and highway maintenance during 2017 (i.e. the City has met eligibility requirements). The funds are not considered reimbursement-type as defined by GASB standards.

2.Cash in the total amount of $997,000 was received from the state government.

3.Contracts, all eligible for payment from the Street and Highway Fund, were signed in the amount of $1,062,000.

4.Contractual services (see transaction 3) were received; the related contracts amounted to $1,042,000. Invoices amounting to $1,040,500 for these items were received. The goods and services all were for street and highway maintenance. Invoices were not yet paid.

5.Short-term investments of $90,0000 were purchased.

6.Investment revenue of $5,120 was earned and received