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Harmon School District accounts for all activities in its General Fund. The school district receives the following grants:1. Grant A: Harmon is reimbursed by the state for costs incurred in teaching students with disabilities.To receive reimbursement, the district must submit quarterly reports showing its expenditures. Its expenditures for the quarter September through November 2012 were $ 450,000. Prepare separate journal entries to record its expenditures under the grant and its billing to the state.2. Grant B: Harmon receives a grant in the amount of $ 100,000 from the federal government for the sole purpose of teaching students with disabilities.The grant contains no time limits and may be used any time after the school district receives the grant. Prepare three separate journal entries to record receipt of the $ 100,000 grant expenditure of $ 65,000 on the grant during school year 2013, and year end classification of fund balance.
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