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Exercise $4-3($Algo$)$

On January $1,2020,$ the first day of its fiscal year, Carter City received notification that a federal grant in the amount of $$650,000$ was

approved. The grant was restricted for the payment of wages to teenagers for summer employment. The terms of the grant permitted

reimbursement only after qualified expenditures have been made; the grant could be used over a two$-$year period. The following data

pertain to operations of the SUMMER EMPLOYMENT GRANT FUND, a special revenue fund of Carter City, during the year ended

December $31,2020$:

The budget was recorded. It provided for Estimated Revenues for the year in the amount of $$325,000,$ and for Appropriations in the

amount of $$325,000.$

A temporary loan of $$325,000$ was received from the General Fund.

During the year, teenagers earned and were paid $$306,900$ under terms of the Summer Employment program. An additional

$$12,500$ is accrued as payable on December $31.$ Recognize the receivable and revenue $($include the $$12,500$ of wages payable$).$

Each month a properly documented request for reimbursement was sent to the federal government; checks for $$314,500$ were

received.

$$277,900$ was repaid to the General Fund.

Necessary closing entries were made.

Prepare journal entries for the year ended December $31$ in the accounts of the Summer Employment Grant Fund. $($If no entry is

required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

$1$

The budget was recorded. It provided for Estimated Revenues for the year in

the amount of $$325,000,$ and for Appropriations in the amount of $$325,000.$

Note: Enter debits before credits.

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