Spencer County Has a Special Revenue Fund That Accounts for Resources

Spencer County has a special revenue fund that accounts for resources to be used for boardwalk construction projects. Resources for the projects come from state grants. The construction activities themselves are reported in a capital projects fund. The balance sheets of the Boardwalk Fund at June 30, 2021, and June 30, 2020, are below.
$\begin{array}{lcc}\text { June } 30&2021&2020\\ \text { Cash and investments... } & \$ 26,980,000 & \$ 25,000,000 \\ \text { Grants receivable, net....... } & 2,000,000 & 1,900,000 \\ \text { Due from capital projects fund. }& \underline{1,500,000} &\underline{--} \\ \text { Total assets.................. } & \$ 30,480,000 & \$ 26,900,000 \\\\ \text {Accounts payable.}&\underline{\$45,000}&\underline{35,000}\\ \text { Total liabilities}&45,000&35,000\\\\ \text {Fund balance}\\ \text {Restricted for boardwalk projects.}&\underline{30,435,000}&\underline{26,865,000}\\ \text {Total liabilities and fund balance}&\underline{\$30,480,000}&\underline{\$26,900,000} \end{array}$

The following transactions occurred during fiscal 2021:
1. Investment income was $150,000, and unrealized gains on investments were $20,000.
2. The state granted $8,000,000 for boardwalk projects.
3. Transfers of $1,200,000 were made to the Waterway Maintenance Fund, which maintains waterways within the County.
4. Transfers of $1,600,000 were received from the capital projects fund for return of excess funds from various boardwalk construction projects.
5. Expenditures were $5,000,000.
Assume the following:
• Receivables are accrued state grants.
• Amounts due from the capital projects fund are advances on construction projects.
• Accounts payable related to accrued expenditures.
Required
a. Prepare the summary journal entries made in the Boardwalk Fund.
b. Present the fiscal 2021 operating statement for the Boardwalk Fund, in good form.