16
Case Study No. 1, continued
If this grant is recorded in subfund 5055-
federal, which is a special revenue fund
What amounts should be reported on the
grants/entitlements closing package as of
June 30, 2001?
*
Review handout attachment
This illustrates an imposed nonexchange transaction.
The City should recognize a receivable on January 1, 20x1 which is the date an enforceable legal claim arises.
Revenues should be recognized for the period May 1, 20x1 to April 30, 20x2 because it is the levy period for which the tax is applicable.
Any amounts collected between March 1, 20x1 and May 1, 20x1 should be DEFERRED until May 1, 20x1 as they are collected in advance of the levy period.