Read the following paragraph and answer the following question.
The department intends to carry out the review during 2014 and issue its final report to the state in early 2015. Upon
announcing the award, the state made an advance payment of $100,000 to the department. It intends to pay the balance
when the department completes the project to the satisfaction of the state.
1. Prepare the journal entries that the state would make in fiscal 2013 to record the awards in an appropriate governmental
fund. Briefly justify the amount of expenditure that you recognized.
Analyze the following accounting sheet and answer the following question.
Statement of Net Assets as to Pension Trust Fund – Firefighter’s Retirement January 1, 2015 (dollar amounts in millions)
Cash and Cash Equivalents $67
Employer Contributions 0
Interest and Dividends 0
Receivables – Other 0
Total Receivables 0
Marketable securities and other 3,180
Total Assets 3,247
Current Liabilities to Retirees 4
Held in trust for pension $3,243
2. Prepare a statement of changes in plan net