A company was granted R12 000 to assist in the financing of mining expenses. The grant was conditional upon the company mining for at least 2 years. The company ceased mining on 30 August 2021. Terms of the grant required the grant to be paid in full. Mining expenses to date 2020 R45 000

A company was granted R12 000 to assist in the financing of mining expenses. The grant was conditional upon the company mining for at least 2 years. The company ceased mining on 30 August 2021. Terms of the grant required the grant to be paid in full. Mining expenses to date 2020 R45 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A company was granted R12 000 to assist in the financing of mining
expenses. The grant was conditional
upon the company mining for at least 2 years. The company ceased
mining on 30 August 2021. Terms of the
grant required the grant to be paid in full. Mining expenses to date 2020
R45 000
2021 R70 000. Prepare the journal entries for 2020 and 2021? Journal
narration as required.

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