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
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Chapter1: Financial Statements And Business Decisions
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government in order to defray safety and environmental
incurred over four years, respectively, P2,000,000,
Prepare journal entries for the first year to record each
An entity received a government grant under the following
1. An entity received a grant of P30,000,000 from the British
Problem 24-1 (PAS 20)
An entity received a government grant under the follo
independent situations:
costs within the area where the entity is located.
The safety and environmental costs are expected to be
P4,000,000, P6,000,000 and P8,000,000.
2. An entity received a grant of P40,000,000 from the
American government for the construction of laboratory
and research facility with an estimated cost of
P50,000,000 and useful life of 20 years.
3. An entity is granted a large tract of land in Cordillera by
the Philippine government. The fair value of the land is
P50,000,000.
The grant requires that the entity shall construct a factory
and employ only personnel residing in the Cordillera region.
The cost of the factory is P80,000,000 with useful life of 25
years.
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.
Transcribed Image Text:government in order to defray safety and environmental incurred over four years, respectively, P2,000,000, Prepare journal entries for the first year to record each An entity received a government grant under the following 1. An entity received a grant of P30,000,000 from the British Problem 24-1 (PAS 20) An entity received a government grant under the follo independent situations: costs within the area where the entity is located. The safety and environmental costs are expected to be P4,000,000, P6,000,000 and P8,000,000. 2. An entity received a grant of P40,000,000 from the American government for the construction of laboratory and research facility with an estimated cost of P50,000,000 and useful life of 20 years. 3. An entity is granted a large tract of land in Cordillera by the Philippine government. The fair value of the land is P50,000,000. The grant requires that the entity shall construct a factory and employ only personnel residing in the Cordillera region. The cost of the factory is P80,000,000 with useful life of 25 years. 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.
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