A local government was awarded a federal grant in the amount of $950,000 to provide for a summer youth employment program for young people.The grant was a reimbursement grant,and a notification of the grant award was received on Apri1 30,2015.The local government expended the resources as follows:
•June 2015:
$400,000;
•July 2015:
$300,000;
•August 2015:
$250,000.
The federal government sent the funds in the month following the expenditure.The local government would recognize revenues for the fiscal year ended June 30,2015 in which amount?

Question

Quizplus · Accepted Answer

The local government would recognize $400,000 in revenues for the fiscal year ended June 30, 2015, as this is the amount expended by that date and eligible for reimbursement.

A Local Government Was Awarded a Federal Grant in the Amount