Question

The following transactions relate to Newport City's special revenue fund. 1. 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. 2. During the first year of operations, revenues from the newly imposed tax totaled $489,000. Of this amount, $444,000 has been received in cash and the remainder will be received within 60 days of the end of the fiscal year. 3. Expenditures (salaries) incurred through the operation of the 911 emergency call center totaled $449,000. Of this amount, $422,000 was paid before year-end. 4. During the year the state government awarded Newport City a grant to reimburse the City's costs (not to exceed $150,000) for the purpose of training new 911 operators. During the year, the City paid $146,500 (not reflected in the expenditures above) to train new operators for the 911 emergency call center and billed the state government. 5. $138,000 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. Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Reg B ReqC Prepare the journal entries for the above transactions. It is not necessary to use control accounts and subsidiary ledgers. (If no entry required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 > 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. Note: Enter debits before credits. Transaction General Journal Debit Credit 01 Record entry Clear entry View general journal

Answer 1

Part A:- Dr Particulars Debit Credit Cash A/C 444000 Tax Receivables A/C Dr 45000 To Tax Revenue A/C 489000 (Being Revenue Earned in Cash & Balance receivables) Salaries A/C Dr 449000 To Cash A/C 422000 To Salary Payables A/C 27000 (Being Salary Expense paid in Cash & Balance are payable) Training Expenses A/ Dr 146500 To Cash A/C 146500 (Being Training Expenses Paid in Cash) State Government A/C 155325 To Reimbursement A/c 155325 (Being Receivables state government as reimbursement of Training expense) Cash A/C Dr 138000 To State Government A/C 138000 (Being Cash against reimbursement received from state Tax Revenue A/C Dr 489000 Reimbursement A/c Dr 146500 To Salary A/C 449000 To Training A/C 146500 To Fund Balance A/C (As Bal. Fig) 40000 Dr

Part B Amount Amount Particulars Revenue:- Tax Revenue Reimbursement Expenses:- Salary Training 489000 146500 635500 449000 146500 595500 40000 Excess Revenue Opening Fund Closing Fund Nil 40000

Part C Liabilities Fund Salary Payable Balance Sheet 2020 Amount Assets 40000 Assets 27000 State Government Taxes Receivables 67000 Total Blc Amount 13500 8500 45000 67000 Total Bic