Part A. Prepare journal entries, in good form, per requirements…

Part A. Prepare journal entries, in good form, per requirements below. Clearly indicate what fund in which the entry is recorded. You need only prepare entries for Hall City Funds. You may ignore Encumbrance Accounting. Use “No Entry” as your answer if none is required.

1. Hall City is awarded an $80,000 grant for a special education program. The grant monies will be received on a reimbursement basis. The City spends $60,000 cash for this program throughout the year. Hall City uses the GF for grants.

a. Entry on date of grant award.

b. Entry for spending made related to special education program.

c. Entry for the $60,000 allowable expenditures submitted to the Federal Government for reimbursement.

d. Entry(ies) in preparation of year-end financial statements related to any grant adjustments.

2.Hall City’s GF lends $100,000 to the City’s Enterprise Fund (loan for a 3 year period

a. Entry for the loan.

b. Entry(ies) in preparation of year-end financial statements related to any loan adjustments.

3. Hall City’s GF has a beginning supplies inventory equal to $50,000. Hall uses the Purchases Method and has used the method appropriately throughout the year. The supplies inventory count equals $55,000 at the end of the year.

a. Entry(ies) for preparation of year-end financial statements related to any inventory adjustments.

4. Hall City receives $200,000 for a state grant to establish a new playground designed for differently-abled children. There are no time limits associated with this grant. The City expended $150,000 cash during this year for this program. Hall City uses the GF for this grant.

a. Entry for receipt of grant monies.

b. Entry for monies spent.

c. Entry(ies) in preparation of year-end financial statements related to any grant adjustments.

5. The Hall city manager, at the end of the year, with the authority from the city charter, decides to put aside $25,000 for new computers in the accounting department.

a. Entry(ies) in preparation of year-end financial statements related to any adjustments for the manager’s decision.

Part B. Assume the balances in the following fund balance accounts exist after all activity in Hall City has been posted EXCEPT the entry(ies) from Part A that were necessary for preparation of the year-end financial statements.

Unassigned Fund Balance $600,000.

Assigned Fund Balance $ -0-.

Committed Fund Balance $-0-.

Non-spendable Fund Balance $50,000.

Restricted Fund Balance $-0-.

Requirement: Prepare the Fund Balance section for Hall City’s partial financial statement with a proper heading. Show all computations for full credit.