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The following transactions relate to Newport Citys special revenue fund. In 2020, Newport City created a special revenue fund to help fund the 911 emergency
The following transactions relate to Newport Citys special revenue fund.
- In 2020, Newport City created a special revenue fund to help fund the 911 emergency call center. The center is to be funded through a legally restricted tax on cellular phones. No budget is recorded.
- During the first year of operations, revenues from the newly imposed tax totaled $492,500. Of this amount, $443,250 has been received in cash and the remainder will be received within 60 days of the end of the fiscal year.
- Expenditures (salaries) incurred through the operation of the 911 emergency call center totaled $439,000. Of this amount, $410,465 was paid before year-end.
- During the year the state government awarded Newport City a grant to reimburse the Citys costs (not to exceed $157,500) for the purpose of training new 911 operators. During the year, the City paid $149,625 (not reflected in the expenditures above) to train new operators for the 911 emergency call center and billed the state government.
- $143,125 of the amount billed to the State had been received by year-end.
Required: a. Prepare the journal entries for the above transactions. It is not necessary to use control accounts and subsidiary ledgers. Prepare closing entries for year-end. b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the special revenue fund. c. Prepare a Balance Sheet assuming there are no committed or assigned net resources.
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