government in order to defray safety and environmentalincurred over four years, respectively, P2,000,000,Prepare journal entries for the first year to record eachAn entity received a government grant under the following1. An entity received a grant of P30,000,000 from the BritishProblem 24-1 (PAS 20)An entity received a government grant under the folloindependent situations:costs within the area where the entity is located.The safety and environmental costs are expected to beP4,000,000, P6,000,000 and P8,000,000.2. An entity received a grant of P40,000,000 from theAmerican government for the construction of laboratoryand research facility with an estimated cost ofP50,000,000 and useful life of 20 years.3. An entity is granted a large tract of land in Cordillera bythe Philippine government. The fair value of the land isP50,000,000.The grant requires that the entity shall construct a factoryand employ only personnel residing in the Cordillera region.The cost of the factory is P80,000,000 with useful life of 25years.4. An entity received a grant of P10,000,000 from theAustralian government to compensate for massive lossesincurred because of a recent earthquake.Required:Prepare journal entries for the first year to record eaindependent government grant.

Accounting for Grant Grant is the amount received for the different activities which are involved…

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.

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.

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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Miscellaneous scenarios requiring journal entries The following transactions and events pertain to Bean County’s General Fundfor the calendar year 2022:1. The entity receives invoices in early January 2023 for $25,000 for professional servicesobtained in 2022, and $32,000 for December 2022 utility services.2. The entity borrows $500,000 on August 1, 2022, in anticipation of thecollection of property taxes. The borrowed amount is due to be repaid onJanuary 31, 2023, with interest at the rate of 1.5 percent per annum.3. The entity invests $300,000 cash in a CD on November 1, 2022, at an interest rateof 1 percent per annum. The CD will mature on January 31, 2023.4. In September 2022, the entity receives and accepts supplies that had beenordered in August. The amount that had been encumbered was $40,000,but the amount of the approved invoice was $42,000.Prepare journal entries for the transactions and events listed above.Enter 0 or leave the field blank if no entry is required for calendar…
On 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.
Prepare journal entries to record each of these transactions in the general fund. Based on your entries, prepare a balance sheet and statement of revenues, expenditures, and changes in fund balance for the general fund. The Authority issued $2.5 million in long-term bonds. · The Authority purchased 4 acres of land for $500,000 in cash. · It sold one of the 4 acres of land for $125,000 in cash. · It made a $325,000 payment on the debt, consisting of $75,000 of interest and $250,000 of principal. · It lost a lawsuit filed by one of its renters and was ordered to pay $1 million in damages over 5 years. It made its first cash payment of $200,000.
A city is building a new park. To finance the construction of the park, the city will issue a $1,800,000 bond, and receive a transfer of $200,000 from the general Please record the journal entries for the Capital Project Fund and the Government-Wide financial statements. 1. The city signed a contract with a construction company to construct the park for $2,000.000. 2. The $1.800.000 bonds were issued at par. 3. The construction company billed the city for $2,000,000 upon completion of the project. 4. The park is completed.
Prepare journal entries to record the transactions.1. Donor A gave a nonprofit a $55,000 cash gift in June, stipulating that the nonprofit could not use the gift until the next fiscal year.2. Donor B gave a nonprofit a $27,500 cash gift in July, telling the nonprofit the gift could be used only for research on a specific project.3. In response to a special fundraising campaign, whereby contributions could be used only for construction of a new warehouse, a large number of individualspromised to make cash contributions totaling $2,200,000 during the current fiscal year. The nonprofit believes it will actually collect 80 percent of the promised cash.4. Donor C gave a nonprofit several investments having a fair value of $3,300,000 in March. Donor C stipulated that the nonprofit must hold the gift in perpetuity,but it could use the income from the gift for any purpose the trustees considered appropriate. Between March and December, the investments produced income of $110,0005. Using the…
Ministry of Tourism makes an appropriation of RO 450,000 for the development of tourist places. The financial transactions during the year, Salary paid to employees RO 50,000. An order is placed for purchasing some equipment for RO 200,000 The amount was transferred to debt service fund RO 6,000. Which one of the following is unreserved fund balance? a. RO 206,000 b. RO 194,000 c. None of the options d. RO 450,000