special revenue fund voluntary non exchange transactions the city of eldon applied f 641530

Special Revenue Fund, Voluntary Non exchange Transactions. The City of Eldon applied for a competitive grant from the state government for park improvements such as upgrading hiking trails and bike paths. On May 1, 2011, the City was notified that it had been awarded a grant of $200,000 for the program, to be received in two installments on July 1, 2011, and July 1, 2012. The grant stipulates that $100,000 is for use in each of the city’s fiscal years ending June 30, 2012, and June 30, 2013. Any amounts not expended during FY 2012 can be carried over for use in FY 2013. During FY 2012, the city expended $90,000 for park improvements from grant resources.

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For the special revenue fund, provide the appropriate journal entries, if any, that would be made for the following:

1. May 1, 2011, notification of grant approval.

2. July 1, 2011, receipt of first installment of the grant.

3. During FY 2011 to record expenditures under the grant.

4. July 1, 2012.

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