At the beginning of current year, Exuberant Company received a consolidated grant of P12,000,000. Three-fourths of the grant will be utilized to purchase a college building for students from underdeveloped or developing countries. The balance of the grant is for subsidizing the tuition costs of those students for four years from the date of grant. The building was purchased in early part of January and is to de depreciated using straight line over 10 years. The tuition costs paid in the current year amounted to 600,000. Required: Prepare journal entries for the current year.
At the beginning of current year, Exuberant Company received a consolidated grant of P12,000,000. Three-fourths of the grant will be utilized to purchase a college building for students from underdeveloped or developing countries. The balance of the grant is for subsidizing the tuition costs of those students for four years from the date of grant. The building was purchased in early part of January and is to de depreciated using straight line over 10 years. The tuition costs paid in the current year amounted to 600,000. Required: Prepare journal entries for the current year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the beginning of current year, Exuberant Company received a consolidated grant of P12,000,000.
Three-fourths of the grant will be utilized to purchase a college building for students from underdeveloped or developing countries.
The balance of the grant is for subsidizing the tuition costs of those students for four years from the date of grant.
The building was purchased in early part of January and is to de
The tuition costs paid in the current year amounted to 600,000.
Required:
Prepare
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