A local government was awarded a federal grant in the amount of $1,200,000 to provide for a summer employment program for young people.The grant was a reimbursement grant and was awarded on April 30,2012.The local government expended the resources as follows: June,2012,$440,000; July 2012,$400,000; August,2012,$360,000.The federal government provided the funds the following months.The local government would recognize revenues for the fiscal year ended June 30,2012 in which amount?

Question

Quizplus · Accepted Answer

The local government would recognize revenues in the month that it expended the funds, which in this case would be June, July, and August of 2012. Therefore, the amount recognized for the fiscal year ended June 30, 2012 would be $440,000. The remaining $760,000 would be recognized in the subsequent fiscal year(s) as the funds are expended and reimbursed by the federal government.

A Local Government Was Awarded a Federal Grant in the Amount