C. The national government (NG) received a grant from the World Health Organization (WHO) amounting to P50 million for the construction of hospitals. Under the terms of the grant, the construction project shall be completed within three (3) years from the receipt of the grant. Otherwise, the money shall be returned to the grantor. The money can only be used as stipulated, and the NG is required to include a note in the financial statement detailing how the money was spent. The Department of Health (DOH) will be the implementing entity. Required: Prepare the journal entries for the following: 1. Receipt of the grant. 2. Purchase of construction materials and payment of labor for the construction. 3. Receipt of the report from DOH for the completion of the construction of hospitals.

C. The national government (NG) received a grant from the World Health Organization (WHO) amounting to P50 million for the construction of hospitals. Under the terms of the grant, the construction project shall be completed within three (3) years from the receipt of the grant. Otherwise, the money shall be returned to the grantor. The money can only be used as stipulated, and the NG is required to include a note in the financial statement detailing how the money was spent. The Department of Health (DOH) will be the implementing entity. Required: Prepare the journal entries for the following: 1. Receipt of the grant. 2. Purchase of construction materials and payment of labor for the construction. 3. Receipt of the report from DOH for the completion of the construction of hospitals.

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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