The trial balance of the Economic Development Special Revenue Fund has beginning balances are debits to cash of $342,230 and investments of 125,000, and credits to accrued salaries payable 450, vouchers payable of 82,000, and fund balance of 384,780. Both the debits and credit sides equal $467,230.
The Economic Development Special Revenue Fund budget was adopted by the city council and included estimated operating recvenues of $930,000 and estimated investment income of $40,000. Appropiations of $945,000 were adopted for economic development programs.
QUESTIONS: Please record the following transactions.
1. the city received a 1,500,000 economic development grant from the state's department of economic development. the grant cash was received and is to be used in certain specified to attracct new business to the city and surronding area.
2. the city purchased investments of 1,300,000. the grant requires that all investment income from the investment of the grnat proceeds MUST be used for economic development.
3. the city received interest on its investments, 55,000.
4. the city incurred and vouchered 840,000 of economic development expenditures that qualify under the state grant program.
5. the city paid for salaries of 75,000 to economic development personnel. the payment included 450 of accrued salaries payable from the prior year. the salaries expenditures qualify under the grant program.
6. the city sold investments costing 800,000 for 815,000.
7. the city paid 800,000 on vouchers payable for economic development.
8. the fair value of the investments of the economic development special revenue fund at year end increased by 1,700. in addition, accrued interest on the investments at year end was 12,000.
9. Accrued salaries payable at year end totaled 200,
10. grant revenues for the year were recorded (if not recorded earlier).
11. the budgetary accounts were closed at year end. (close the budgetary accounts in the transactions columns).
Also, If you could label whether these transactions will be on the balance sheet or operating statement would be greatly appreciated.