Prepare journal entries for the first year to record each 4. An entity received a grant of P10,000,000 from the Australian government to compensate for massive losses incurred because of a recent earthquake. Required: Prepare journal entries for the first year to record ea independent government grant.
Q: At the beginning of the year, the Baker Fund,a nongovernmental not-for-profit corporation,received a…
A: The objective of the question is to calculate the amount that Baker Fund should report as net assets…
Q: hrd.4
A: A Journal Entry is just a summary of the debits and credits of the transaction that has been entered…
Q: pposed to be spent on each center is US$1.2 million but the average cost of each of five…
A: Auditing refers to the concept of evaluating and checking all the desired transactions mentioned in…
Q: How much income from government grant will Entity A recognize? * On January 1, 2021, Entity A…
A: As per IAS 20 : Accounting for government grants and disclosure of government assistance "If any…
Q: Example 2 Kaokodi Ltd received a grant of GHC60 million to compensate it for costs it incurred in…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: 46. PR.03-17 Problem 3-17 Business Gifts (LO 3.9) Sam owns an insurance agency and makes the…
A: Income Tax Expenses: The expenses which are related to the taxable income of the individuals and…
Q: 1. Aston pic's equity beinres as shown in its statements of financial position at 31 December 20X2…
A: Retained earnings is the amount of earnings accumulated over the period of time. Net income earned…
Q: Landry State University, a public university located in Louisiana, has a June 30 fiscal year. On…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: A capital projects fund for a new state legislative chamber building received $600,000 from a state…
A: A capital projects fund is a specific type of fund used in governmental accounting to account for…
Q: For the year ended June 30, 20X9, a university assessed its students a total of $4,000,000 for…
A: The objective of the question is to calculate the net revenue from tuition and fees that should be…
Q: Question No. 3 On 1/1/2011, the Health Ministry authorized the construction of a new building in…
A: Encumbrances refers to amount that is blocked from fund balance for known liability. For Contracts,…
Q: Grants in recognition of specific costs are recognized as income A. Immediately B. Over a…
A: Grants:- Grants are sources of free money that general need not to be repaid. It is given by the…
Q: XYZ Pte Ltd made the following donations during the accounting year ended 30 June 2022: -Cash…
A: A deductible donation is the amount, which has been allowed to the corporation by which the taxable…
Q: epare journal entries for the current year in connection with the grant
A: Step 1 Journal is the part of book keeping.
Q: Residents of the town of Sunny View, Arizona authorized a $5,000,000 renovation to their historic…
A: 1. Capital Projects Fund: This fund accounts for financial resources segregated for the construction…
Q: For each of the following transactions, determine the correct debit account from among the choices…
A: In a journal entry for accounting, debits are always entered on the left side of the entry. A credit…
Q: Manthei University, a private university, has provided the following information concerning selected…
A: Journal entries represent the record of day to day operating transactions of the entity which takes…
Q: property in the General Fund
A: A donation is essentially a gift for humanitarian aid, charity, or to benefit a cause. A donation…
Q: the beginning of the year, the Baker Fund, a nongovernmental not-for-profit corporation, received
A: The computation involves comparing the earnings derived from the restricted funds with the costs…
Q: The general fund contracts with a construction firm to build an Afghan and Iraqi war memorial based…
A: The correct option is c.
Q: 36. Gray College, a private not-for-profit institution, received a contribution of $100,000 for…
A: SOLUTION TEMPORARILY RESTRICTED NET ASSETS ARE USUALLY EARMARKED BY THE DONOR FOR A SPECIFIC PROGRAM…
Q: On January 1, 2021, Fantastic Corporation received cash of P8,000,000 from a local government to be…
A:
Q: On Jan. 1, 2021, Microsoft Company received a consolidated grant of P12,000,000. Three-fourths of…
A: Grants means the amount received without any sale of product or providing any services. Government…
Q: For the year ended June 30, 20X9, a university assessed its students a total of $4,000,000 for…
A: To determine the net revenue from tuition and fees without donor restrictions, we need to subtract…
Q: 17. Ebasan Company received a grant of P60,000,000 to compensate it for costs it incurred in…
A: Solution Concept As per the provision of PAS 20 , The grant received to compensate for its cost…
Q: During the year, Private College received the following: An unrestricted $10,000 pledge to be paid…
A: The question pertains to the reporting of contribution revenue in the statement of activities for…
Q: Surgimed Ghana Ltd. received a government grant of GH¢300,000 for acquiring plant and machinery…
A: Every company will prepare the accounting statements based on the transactions, and nature of the…
Q: The following events relate to Habitat for Humanity International's activities. If appropriate,…
A: Yes the item should be recorded as contribution
Q: 47 A Ltd. purchased a machinery for $40 lakhs. (Useful life 4 years and residual value $8 lakhs)…
A: A government grant that is related to the asset is recorded by debiting the cash account and…
Q: lannon University, a private, nonprofit university, receives a letter from an alumnus who pledges…
A: A not-for-profit organization is an enterprise established with a service motive. The main purpose…
Q: 2. Five entries required Required: On January 1, 2024, a foundation made a pledge to pay $47,000…
A: Journal entriesThe process of recording the day-to-day transactions of the company in the books is…
Q: For a number of years, a private not-for-profit entity has been preparing financial statements that…
A: The assets with donor restrictions mean there are some restrictions imposed by the donor and the…
Q: The City of Brown Creek constructed a new storage facility using the city's own public works…
A: The amount need to be capitalized is of only specific borrowing not of General ones
Q: long term liabilities was $2,200.
A: Compensated absence is related with Employees. That will paid by the firm to the Employee in near…
Q: The grant income to be recognized in the second year should be?
A: The grant income that would be recognized each year would be in proportion to research expenses…
Q: Residents of the town of Sunny View, Arizona authorized a $5,000,000 renovation to their historic…
A: The given scenario involves a town in Arizona, Sunny View, that authorized a $5,000,000 renovation…
Q: E13.1 Reporting Various Contributions The Castile County Rescue Mission receives the following…
A: Net assets are referred to as the amount which includes the deposit made by the depositors, the…
Q: Greenville County had the following federal award activity during the most recent fiscal year:…
A: Type A programs are defined as Federal programs with Federal awards expended during the audit period…
Q: On January 1, 2020, CDO Corporation created a special building fund by depositing a single sum of…
A: Trust Fund: It is the fund containing assets that is held by the trustees for the beneficiaries.…
Q: Required information Problem 18-45 (Static) (LO 18-1, 18-2, 18-4, 18-5, 18-8) [The following…
A: The problem here is that an expense of $70,000 was reported although the donation was a garage that…
Q: An entity receives a grant of P50,000,000 from the Japanese Government for the construction of a…
A: Deferred Income Approach If the grant received for buying depreciating assets, the grant should be…
Q: Calculate the amount relating to borrowing cost that should be capitalized in the cost of the…
A: Borrowing Cost Borrowing costs refer to the expense of taking out loan like interest payments…
Step by step
Solved in 2 steps
- ni.9Accounting You have recently been named the chief accountant for Stop Smog Now (SSN), a not-for-profit organization that provides pollution control devices for coal burning plants in developing countries. On February 15, Year 7, SSN received a restricted contribution of $750,000 for the purchase of land and building. On March 11, Year 7, SSN purchased a building and land for $500,000 and $250,000 respectively. The building will be depreciated over 20 years. Year end is March 31. Required: Assuming the Deferral method is used, provide all the journal entries required for February and March of Year 7 Please give me correct entries thnkuTopic: Government Grant Question: How much should be grant income for the first year of grant foreach of the following cases? a. A 10-year, non-interest bearing, P20,000,000 term loan was received from the Philippine government. Without the loan from the government, the entity would need to pay 8% interest per year. b. P3,000,000 government grant was received to support the continued existence of the entity. The entity was heavily affected by the ashfall from a nearby volcano. The entity has a total legal life of 50 years and is on its 40th year.
- At the beginning of the year, the Baker Fund,a nongovernmental not-for-profit corporation,received a $125,000 contribution restrictedto youth activity programs. During the year,youth activities generated revenues of$89,000 and had program expenses of$95,000. What amount should Baker reportas net assets released from restrictions forthe current year?provide solution in good accounting formOn 1 June 20x1, CLM received written confirmation from a local government agency that it would receive a $1 million grant towards the purchase price of a new office building. The grant becomes receivable on the date that CLM transfers the $10 million purchase price to the vendor. On 1 October 20x1 CLM paid $10 million in cash for its new office building, which is estimated to have a useful life of 50 years. By 1 December 20x1, the building was ready for use. CLM received the government grant on 1January 20x2. Required Discuss the possible accounting treatments of the above in the financial statements of CLM for the year ended 31 December 2x1.
- Accounting for Contribution Revenue Hannon University, a private, nonprofit university, receives a letter from an alumnus who pledges $4,400,000 for the establishment of a center for public service. The donor expresses the wish that the amount be used in the next fiscal year, but the donor's letter does not identify any barriers to be overcome or identify a right of release. Based on history, Hannon University expects to collect 95% of the pledged amount. 1. Record the journal entry that would be recorded upon receipt of the letter. Enter accounts in order of magnitude (largest to smallest amounts), debits first. Account Debit To record the pledge from an alumnus. 0 0 0 Credit Revenue would have been recorded for the full pledge amount. The pledge would not have been recorded. The revenue would not have been recorded as restricted. 0 0 0 2. How would the pledge have been recorded if Hannon University were a public university? →Palestine College, a not-for-profit institution, engaged in the following transactions during its fiscal year ending June 30, 2018. Prepare appropriate journal entries, indicating the net asset category affected (with donor restrictions or without donor restrictions). 1. The college collected student tuition $8 million as follows: $1,500,000 was applicable to the Summer Semester, which ran from June 1 to August 30, and the rest was applicable to the coming Fall Semester (September-December). 2. Using funds restricted for this purpose, the college purchased $300,000 of equipment for their movie theater. The college charged depreciation of $30,000. 3. The annual alumni campaign yielded $2,800,000 in pledges. The college estimated that 2 percent would be uncollectible. During the year the college collected $2,400,000 on the pledges.Assume that the company is operating a Takaful plan for a one-year coverage period. The company receives contributions of $100,000 from 50 participants, each contributing $2,000. The company invests the contributions in Shariah-compliant assets and earns a profit of $10,000 on these investments. The company pays wakalah fees of $2,500 for managing the Takaful plan. During the coverage period, the company pays claims of $20,000 to participants who suffer losses covered by the Takaful plan. journal entries and the income statement.
- Surgimed Ghana Ltd. received a government grant of GH¢300,000 for acquiring plant and machinery costing GH¢1,500,000 during 2017 financial year and having a useful life of 10 years. The grant received was credited to deferred income in the statement of financial position as a result of adopting the deferred income approach of accounting for government grant. During the 2020 financial year, the company had to refund the grant to the government due to non-compliance of the conditions laid down for the grant. Required Explain to directors of Surgimed Ghana Ltd. what should be the appropriate treatment of the refund of the grant. Explain the effect on the cost of the plant and machinery, and the amount of depreciation that should be charged during the 2020 financial year financial statements.6. On January 1 of year 1, XYZ Company is granted a tract of land in Davao Oriental by the current administration of the Philippines. The fair value of the land is P40,000,000. XYZ Company is required by the grant to construct a chemical research facility and employ personal residing within the locality. It is estimated that the cost of the facility will be P45,000,000 with 10 years of useful life. Beginning of year 2, the facility is ready for its intended usage. XYZ Company sets up the grant as a liability. Determine the balance of the liability at the end of year 4.Transaction ESurgimed Ghana Ltd. received a government grant of GH¢300,000 for acquiring plant and machinery costing GH¢1,500,000 during 2017 financial year and having a useful life of 10 years. The grant received was credited to deferred income in the statement of financial position as a result of adopting the deferred income approach of accounting for government grant. During the 2020 financial year, the company had to refund the grant to the government due to non-compliance of the conditions laid down for the grant. RequiredExplain to directors of Surgimed Ghana Ltd. what should be the appropriate treatment of the refund of the grant. Explain the effect on the cost of the plant and machinery, and the amount of depreciation thatshould be charged during the 2020 financial year financial statements.