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ethe 20X4 Statement of Revenues, Expenditures, and Changes in Fund Balance for t

ID: 2591791 • Letter: E

Question

ethe 20X4 Statement of Revenues, Expenditures, and Changes in Fund Balance for the ntion Special Revenue Fund. Addiction Ath 20x4 balance sheet for the Addiction Prevention Special Revenue Fund. (Assume 60,000 of the resources of the fund at December 31, 20X4 are restricted.) hat all but i and Events-20x4 city council adopted the budget for the Addiction Prevention Special Revenue Fund. l The budget for the fund included estimated grant revenues of $530,000 and appropriations public safety of $525,000. orepaity was awarded a federal grant for drug addiction and enforcement programs. The : Tnetreguires the city to incur qualifying expenditures, then apply for reimbursement. The erat amount of the grant award, which can be used anytime during the next 3 years, is 00-none of which is received at this time $1.200,0 The city contracted for and received services costing $450,000 that qualify for reimburse ment under the grant agreement. The expenditures, for the Public Safety function, were ouchered. 4 The Addiction Prevention Special Revenue Fund borrowed $500,000 from the General The city applied for and received reimbursement of $450,000 from the federal grantor ty incurred and vouchered $75,000 of Public Safety expenditures for the Addiction Prevention program: $50,000 of the costs is reimbursable under the grant agreement. The Fund on a short-term basis. agency under the provisions of the grant agreement. city applied for reimbursement, which is expected early next year 1. The ci 8 $250,000 of the loan from the General Fund was repaid 9. A transfer of $60,000 was received from the General Fund. 0. The budgetary accounts were closed at year end. (Close the budgetary accounts in the transactions columns.)

Explanation / Answer

Statement of Revenue and expenditures for Addiction prevention special reserve fund is as under

Income side:

a) Grant received $4500000

b) Grant received $50000

Expenditure:

a) Expenditures for public safety function $450000

b) Public safety expenditures $75000

c) Deficit $25000

Balance sheet for Addiction prevention and special revenue fund

Liablities

1) Borrwing from General fund ($500000-$250000+60000)= 310000

2) Expenses payable:($75000+$20000) $95000

3) Deficit: $25000

total assets = $380000

Assets

a) Bank a/c ($450000+$500000-$250000-$430000+$60000) $330000

b) Grants receivable $50000

Total Liablities $ 380000

Chnages in fund balance is shown in bank account is balancesheet tabulated above

Jouranl Entries for Addiction prevention special revenure fund

For point no 1 ) NA

2) in case of 2) NA in case of Addiction prevention revenue fund

3) Expenditures for public safety a/c Dr $450000

to Crediors A/c $ 4500000

4) Bank a/c Dr $ 500000

to General fund $500000

5) Credtiors a/c dr $430000

to bank a/c $430000

6) Bank A/c 450000

to federal grant received for expenditure $450000

7) Expenditures for public safety $75000

To expenditures payable (liablities payable) $ 75000

8) General fund borrwoings $ 250000

to bank a/c $250000

9) Bank a/c Dr $60000

to General fund $60000