In 2021, Sebring County established a Flood Control special revenue fund. During 2021, the following events occurred:
•The general fund transferred $5,000,000 to the Flood Control Fund.
•A state grant of $3,000,000 was received.
•Contracts totaling $5,500,000 were signed for flood control work. Contractors submitted bills for $3,200,000. Bills totaling $3,100,000 were paid.
•Equipment of $1,000,000 was purchased. $300,000 remains unpaid.
•The fund does not use budgetary accounts.
•The county's policy is to spend restricted resources first.
Required
a. Prepare all 2021 journal entries and closing entries for the Flood Control Fund.
b. Prepare the 2021 operating statement and the year-end balance sheet for the Flood Control Fund.

Question

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The Answer of In 2021, Sebring County established a Flood Control special revenue fund. During 2021, the following events occurred:
•The general fund transferred $5,000,000 to the Flood Control Fund.
•A state grant of $3,000,000 was received.
•Contracts totaling $5,500,000 were signed for flood control work. Contractors submitted bills for $3,200,000. Bills totaling $3,100,000 were paid.
•Equipment of $1,000,000 was purchased. $300,000 remains unpaid.
•The fund does not use budgetary accounts.
•The county's policy is to spend restricted resources first.
Required
a. Prepare all 2021 journal entries and closing entries for the Flood Control Fund.
b. Prepare the 2021 operating statement and the year-end balance sheet for the Flood Control Fund.

In 2021, Sebring County Established a Flood Control Special Revenue