New energy-efficient windows were installed for a total cost of $375,000. The company received a government grant, in the form of cashback for 15% of the total cost. The windows have a 15-year useful life and are depreciated on a straight-line basis. Prepare the journal entries required in the year of purchase using the: 1) Net method 2) Deferral method

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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New energy-efficient windows were installed for a total cost of $375,000. The company received a government grant, in the form of cashback for 15% of the total cost. The windows have a 15-year useful life and are depreciated on a straight-line basis.

Prepare the journal entries required in the year of purchase using the:

1) Net method

2) Deferral method

 

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