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Assignment
Carey, NC was received a $30,000 grant from the U.S. Department of Homeland Security to study local policing issues. A Special Revenues Fund was created (ignore budget adoption). The monies were received in the Special Revenues Fund, and then transferred to the General Fund.
1. The Special Revenues Fund receives the funds from the U.S. Department of Homeland Security. Journalize the receipt of the grant proceeds in the Special Revenues Fund:
2. The Special Revenues Fund transfers the grant proceeds to the General Fund, where the monies will be spent on the study (in Public Safety). Journalize the entry in the Special Revenues Fund to transfer the monies to the General Fund:
3. In the General Fund, journalize the receipt of the $30,000 from the Special Revenues Fund:
4. Assume Carey, NC spends $22,000 on the study. Journalize the entry in the General Fund to record the expenditure and liability (ignore encumbrances).
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