On January 1, 2017, the first day of its fiscal year, Carter City received notification that a federal grant in the amount of $565,000 was approved. The grant was restricted for the payment of wages to teenagers for summer employment. The terms of the grant permitted reimbursement only after qualified expenditures have been made; the grant could be used over a two-year period. The following data pertain to operations of the SUMMER EMPLOYMENT GRANT FUND, a special revenue fund of Carter City, during the year ended December 31, 2017. 1. The budget was recorded. It provided for Estimated Revenues for the year in the amount of $282,500, and for Appropriations in the amount of $282,500.
2. A temporary loan of $282,500 was received from the General Fund .
3. During the year, teenagers earned and were paid $272,050 under terms of the Summer Employment program. An additional $8,250 is accrued as payable on December 31. Recognize the receivable and revenue (include the $8,250 of wages payable).
4. Each month a properly documented request for reimbursement was sent to the federal government; checks for $276,250 were received.
5. $251,550 was repaid to the General Fund
6. Necessary closing entries were made.

1. Dr. Estimated revenue control 282,500

Cr. Appropriations control 282,500

2. Dr. cash 282,500

Cr. Due to general fund 282,500

3. a. Dr. expenditures control 280,300

Cr. Cash 272,050

Cr. Accrued wages payable 8,250

3b. Dr. grants receivable - Federal government 280,300

Cr. Revenues control 280,300

4. Dr. cash 276,250

Cr. Grants receivable -federal gonv 276,250

5. Dr. Due to general fund 251,550

Cr. Cash 251,550

6. Dr. Appropriations control 282,500

Cr. Estimated revenues control 282,500

Dr. Revenues control 380,300

Dr. fund balance 0

Cr. Expenditure control 380,300

Explanation:

Preparation of the Journal entries for Carter City

1. Based on the information given we were told that Estimated Revenues for the year was the amount of $282,500 while the Appropriations was in the amount of $282,500 this means that the transaction will be recorded as:

Dr. Estimated revenue control 282,500

Cr. Appropriations control 282,500

2. Since temporary loan of the amount of $282,500 was received from the General Fund, the Journal entry will be:

Dr. cash 282,500

Cr. Due to general fund 282,500

3.Since the teenagers earned and were paid the amount of $272,050 and An additional of $8,250 was accrued as payable while the Recognize the receivable and revenue include the amount of $8,250 of wages payable, this means that the transaction will be recorded as:

a. Dr. expenditures control 280,300

(272,050+8,250)

Cr. Cash 272,050

Cr. Accrued wages payable 8,250

3b. Dr. grants receivable - federal government 280,300

Cr. Revenues control 280,300

(272,050+8,250)

4. Since checks for the amount of $276,250 were received by the Federal government, this means that the Transaction will be recorded as:

Dr. cash 276,250

Cr. Grants receivable -federal gonv 276,250

5.Since the amount of $251,550 was repaid to the General Fund, the Journal entry will be:

Dr. Due to general fund 251,550

Cr. Cash 251,550

6. Since the Necessary closing entries were made, the transaction will be recorded as:

Dr. Appropriations control 282,500

Cr. Estimated revenues control 282,500

Dr. Revenues control 380,300

Dr. fund balance 0

Cr. Expenditure control 380,300

(272,050+8,250)

answer; i believe the correct answer is (a) purchase of treasury stock;