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Accounting for Grant Revenue The U.S. Department of the Agriculture (USDA) awards a one-year $2,750,000 grant to Eddings University, a public university. The grant is to be used for projects in the agricultural business program. Eddings University will use the grant to maintain its educational farms. The entire grant award is received on July 1, the first day of Eddings University's fiscal year. The grant requires two periodic reports that demonstrate expenses consistent with the grant's purpose. Any portion of the grant award not used for the specified purpose must be returned to the U.S. Department of Agriculture, and the grant is explicitly identified as expenditure-driven. Record entries for the following events and transactions: 1. The receipt of the award. 2. The expenditure of $1,100,000 during the first six months for farm maintenance. (Farm maintenance expenses are consistent with the grant's purpose.) 3. The expenditure of an additional $1,512,500 through the remaining six months of the fiscal year, also for farm maintenance. Eddings University was not able to spend the remaining $137,500 associated with the grant. If no adjustment is necessary, select "No debit (or credit) entry needed in the account fields and enter 0 in the amount fields. Account 1. To record receipt of grant funds To record grant revenue for first six months. To record expenditures related to grant in first six months. V V v To record grant revenue for final six months. V V To record unspent grant funds To record expenditures related to grant in final six months V v V V V V Debit 0 0 0 0 0 0 0 0 0 0 0 0 Credit 0 0 0 D 0 0 0 0 0 0 0 0

Accounting for Grant Revenue The U.S. Department of the Agriculture (USDA) awards a one-year $2,750,000 grant to Eddings University, a public university. The grant is to be used for projects in the agricultural business program. Eddings University will use the grant to maintain its educational farms. The entire grant award is received on July 1, the first day of Eddings University's fiscal year. The grant requires two periodic reports that demonstrate expenses consistent with the grant's purpose. Any portion of the grant award not used for the specified purpose must be returned to the U.S. Department of Agriculture, and the grant is explicitly identified as expenditure-driven. Record entries for the following events and transactions: 1. The receipt of the award. 2. The expenditure of $1,100,000 during the first six months for farm maintenance. (Farm maintenance expenses are consistent with the grant's purpose.) 3. The expenditure of an additional $1,512,500 through the remaining six months of the fiscal year, also for farm maintenance. Eddings University was not able to spend the remaining $137,500 associated with the grant. If no adjustment is necessary, select "No debit (or credit) entry needed in the account fields and enter 0 in the amount fields. Account 1. To record receipt of grant funds To record grant revenue for first six months. To record expenditures related to grant in first six months. V V v To record grant revenue for final six months. V V To record unspent grant funds To record expenditures related to grant in final six months V v V V V V Debit 0 0 0 0 0 0 0 0 0 0 0 0 Credit 0 0 0 D 0 0 0 0 0 0 0 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Accounting for Grant Revenue The U.S. Department of the Agriculture (USDA) awards a one-year $2,750,000 grant to Eddings University, a public university. The grant is to be used for projects in the agricultural business program. Eddings University will use the grant to maintain its educational farms. The entire grant award is received on July 1, the first day of Eddings University's fiscal year. The grant requires two periodic reports that demonstrate expenses consistent with the grant's purpose. Any portion of the grant award not used for the specified purpose must be returned to the U.S. Department of Agriculture, and the grant is explicitly identified as expenditure-driven. Record entries for the following events and transactions: 1. The receipt of the award. 2. The expenditure of $1,100,000 during the first six months for farm maintenance. (Farm maintenance expenses are consistent with the grant's purpose.) 3. The expenditure of an additional $1,512,500 through the remaining six months of the fiscal year, also for farm maintenance. Eddings University was not able to spend the remaining $137,500 associated with the grant. If no adjustment is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Account 1. To record receipt of grant funds. To record expenditures related to grant in first six months. To record grant revenue for first six months. くくくくくくくくくく To record expenditures related to grant in final six months. To record grant revenue for final six months. To record unspent grant funds. Debit 0 0 0 0 0 0 0 0 O O 0 0 0 O O Credit 0 0 0 0 0 0 0 0 0 0 0 0
Transcribed Image Text:Accounting for Grant Revenue The U.S. Department of the Agriculture (USDA) awards a one-year $2,750,000 grant to Eddings University, a public university. The grant is to be used for projects in the agricultural business program. Eddings University will use the grant to maintain its educational farms. The entire grant award is received on July 1, the first day of Eddings University's fiscal year. The grant requires two periodic reports that demonstrate expenses consistent with the grant's purpose. Any portion of the grant award not used for the specified purpose must be returned to the U.S. Department of Agriculture, and the grant is explicitly identified as expenditure-driven. Record entries for the following events and transactions: 1. The receipt of the award. 2. The expenditure of $1,100,000 during the first six months for farm maintenance. (Farm maintenance expenses are consistent with the grant's purpose.) 3. The expenditure of an additional $1,512,500 through the remaining six months of the fiscal year, also for farm maintenance. Eddings University was not able to spend the remaining $137,500 associated with the grant. If no adjustment is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Account 1. To record receipt of grant funds. To record expenditures related to grant in first six months. To record grant revenue for first six months. くくくくくくくくくく To record expenditures related to grant in final six months. To record grant revenue for final six months. To record unspent grant funds. Debit 0 0 0 0 0 0 0 0 O O 0 0 0 O O Credit 0 0 0 0 0 0 0 0 0 0 0 0
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