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Special Revenue Fund for the Town of Thorton

The Town of Thorton applied for a grant from the state government for providing an after-school recreational program for at-risk children from low-income families. On January 15, 2008, Thornton was notified that it had been awarded $100,000 for the program. Children are eligible for this program is their family income is less than $25,000. The program provides up to $1,000 per child served. The gram provides twice monthly reimbursement of all allowable costs of conducting the program, upon notification of program services provided and related expenditures incurred. No time limit is imposed for completion of the program. Any unused grant award can be carried forward to the next fiscal year. By December 31, 2008, its fiscal year-end, Thorton had expended $78,000 in providing services for eligible beneficiaries. Reimbursements of $72,000 had been received by this date.

Provide appropriate journal entries in both the special revenue fund and governmental activities journals, if any, that would be made upon notification of the grant award.

Also, provide the appropriate journal entries for FY 2008 in both the special revenue fund and governmental activities journals, assuming that the program expenses are incurred in the Parks and Recreation function.

Solution Preview

Provide appropriate journal entries in both the special revenue fund and governmental activities journals, if any, that would be made upon notification of the grant award.

Governmental Activities Journal entry
Budget ...

Solution Summary

Journal entries for a government grant to a town used to run after-school activities for disadvantaged children.

$2.19