Vacation City was awarded a $500,000 federal operating grant for use in Year 2. On December 1 of year 1, half of the grant money was received by the City. The journal entry to record receipt of the grant funds will include: Multiple Choice A. A credit to Revenues in the amount of $250,000. B. A credit to Deferred Inflow of Resources- Grant Proceeds in the amount of $250,000. C. A debit to Grant Expenditures in the amount of $250,000. D. No journal entry will be made until expenditures are made in Year 2.
Vacation City was awarded a $500,000 federal operating grant for use in Year 2. On December 1 of year 1, half of the grant money was received by the City. The journal entry to record receipt of the grant funds will include: Multiple Choice A. A credit to Revenues in the amount of $250,000. B. A credit to Deferred Inflow of Resources- Grant Proceeds in the amount of $250,000. C. A debit to Grant Expenditures in the amount of $250,000. D. No journal entry will be made until expenditures are made in Year 2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Vacation City was awarded a $500,000 federal operating grant for use in Year 2. On December 1 of year 1, half of the grant money was received by the City. The
A. A credit to Revenues in the amount of $250,000.
B. A credit to Deferred Inflow of Resources- Grant Proceeds in the amount of $250,000.
C. A debit to Grant Expenditures in the amount of $250,000.
D. No journal entry will be made until expenditures are made in Year 2.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education