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ACC460_TEAMC_WEEK3 - Chapter4Question ,prepareallnecessary...

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Chapter 4 Question  Assuming that the City of Katerah maintains its books and records in a manner that  facilitates the preparation of the fund financial statements, prepare all necessary  journal entries to record the City’s revenues for the year ended 12/31/2007.  The city  has adopted the 60-day rule for all revenue recognition for which it is appropriate.   a.) On January 15, the City received notification that it was the recipient of a  $200,000 federal grant to assist in the operation of its “Meals on Wheels’ program.  The federal government expects to send the cash in about 3 months. This is not a  reimbursement type grant, and all eligibility requirements have been met.  Federal Grant Receivable  $200,000 Grant Revenue $200,000 b.) In February the City spent $21,000 on “Meals on Wheels.” Expenditures  $21,000 Cash $21,000 c.) In March, fines of $1,200 were issued for parking tickets.  Payment must be made  within 30 days, when the City has an enforceable legal claim to the amounts.   No enforceable legal claim so no entry is required.  d.) In April, the City received the $200,000 from the federal government. Cash $200,000      Federal grant receivable  $200,000 e.)  Payments of $800 were received in April in payment of March parking tickets.  $100 in tickets were contested and court dates have been set.  The City expects 
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that $100 in tickets will be uncollectible and the remaining amounts will be paid  eventually.   Cash $800 Fines receivable  $800 f.)  Restaurant licenses are issued for a one-year period.  The licenses are valid for  one year from July 1 to June 30.  The license fees are used to pay restaurant 
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ACC460_TEAMC_WEEK3 - Chapter4Question ,prepareallnecessary...

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