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

See similar textbooks

Similar questions

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.
C. The national government (NG) received a grant from the World Health Organization (WHO) amounting to P50 million for the construction of hospitals. Under the terms of the grant, the construction project shall be completed within three (3) years from the receipt of the grant. Otherwise, the money shall be returned to the grantor. The money can only be used as stipulated, and the NG is required to include a note in the financial statement detailing how the money was spent. The Department of Health (DOH) will be the implementing entity. Required: Prepare the journal entries for the following: 1. Receipt of the grant. 2. Purchase of construction materials and payment of labor for the construction. 3. Receipt of the report from DOH for the completion of the construction of hospitals.
On January 1, 2011, Sagada Company received a grant of P25,000,000 from the American government in order to defray safety and environmental costs within the area where the entity is located. The safety and environmental costs are expected to be incurred over four years, respectively, P4,000,000, P3,000,000, P5,000,000 and P8,000,000. How much income from the government grant should be recognized in 2011? A. 20,000,000 B. 4,000,000 C. 30,000,000 D. 6,000,000
A government was awarded a grant from another government. The $8,000,000 grant is restricted to use for construction of a facility for one of the grantee government's enterprise activities. The grant is for half the cost of the facility. The grantor will reimburse half of the costs as they are incurred. At the end of the first fiscal year, $3,000,000 has been spent on the project. $1,500,000 has been collected from the grantor. How should the grantee's Enterprise Fund statement of cash flows report the cash inflows?
The following events relate to Habitat for Humanity International's activities. If appropriate, assume a discount rate of 3 percent per annum. Expenditures for house building activities are categorized as program expense. Need Part b. answer. 6. A donor contributes $15,000 in cash and signs an agreement to contribute $15,000 at the beginning of each of the next four years, to support specific Habitat for Humanity projects. a. Contribution received now Amount $ 15,000✔ Classification: Net assets without donor restrictions Amount $ x Classification: Net assets with donor restrictions Recorded? Yes b. Contributions received the next four years Recorded? Yes ◆
Green Pastures received a grant of P60 million to compensate it for costs incurred in planting Narra trees over a period of 5 years. Green Pastures will recur such costs in this manner: Year Costs 1 2M 2 4M 3 6M 4 8M 5 10M Total costs thus incurred will aggegate P30 M. Required: Based on the provisions of PAS 20, Government Grants, how should Green Pastures treat the “grant” in the books?
On January 1, 2019, Munich Co. received a grant of P10,000,000 from the government of USA for the construction of a building that will be used as a laboratory and research facility with an estimated cost of P15,000,000 and useful life of 10 years. The facility was completed on January 1, 2020. How much is the balance of deferred income from government grant on December 31, 2020 under the gross method (deferred income approach)?
the national government received a grant from the who amounting to p50 million for the construction of hospitals. under the terms of the grant,the construction project shall be completed within 3 yrs from the receipt of the grant. otherwise,the money shall be returned to the grantor.the money can only be used as spitulated, and the ng is required to include a note in the financial statement detailing how the money was spent. the department of health will be the implementing entity. required:prepare the journak entries for the following: 1.Receipt of the grant. 2.Purchaae of construction materials and payment of a labor for rhe construction. 3.Receipt of the report from doh for the completion of the construction of hospitals.
Shina township's financial transaction during the year as follows, Equipment purchased from restricted fund RO 25 million, Paid salary to government employees RO 5 million, Government grant RO 2 million. The amount that should report as expenditure in its general funds is a. RO 5 million b. RO 30 million c. None of the options d. RO 25 million Shina township's financial transaction during the year as follows, Equipment purchased from restricted fund RO 25 million, Paid salary to government employees RO 5 million, Government grant RO 2 million. The amount that should report as expenditure in its general funds is a. RO 5 million b. RO 30 million c. None of the options d. RO 25 million Shina township's financial transaction during the year as follows, Equipment purchased from restricted fund RO 25 million, Paid salary to government employees RO 5 million, Government grant RO 2 million. The amount that should report as expenditure in its general funds is a. RO 5…
A company receives a government grant of $500,000 on 1 April 20X7 to facilitate purchase on the same day of an asset which costs $750,000. The asset has a five year useful life and is depreciated on a 30% reducing balance basis. Company policy is to account for all grants received as deferred income. What amount of income will be recognised in respect of the grant in the year to 31 March 20X9?
C. 26. A. B. D. The capital projects fund of Hysham completed construction of a new building. The building should be reported in the: I. government-wide statement of net assets. II. capital projects fund. A) I only B) II only C) Either I or II D) Neither I nor II 27. Which presentation method combines the component unit's results into the primary government's financial results? $ 600,000 Proceeds from general obligation bond issue $ 2,000,000 Transfer from Cherry's general fund $ 150,000 In its 20X1 capital projects fund operating statement, Cherry should report these amounts as: Other financing sources A) Blended presentation B) Discrete presentation C) Combined presentation D) Consolidated presentation 28. Financing for the renovation of Cherry City's municipal park, begun and completed during 20X1, came from the following sources: Grant from state government S 0 600,000 $2,750,000 $2,600,000 Revenues $ A) Option A B) Option B C) Option C D) Option D $ $ $ $ 2,750,000 2,150,000 0…
A government buys equipment for its police department at a cost of $54,000. Which of the following is Equipment will increase by $54,000 in the government-wide financial statements. Depreciation in connection with this equipment will be reported in the fund financial statements. The equipment will not appear within the reported assets in the fund financial statements. An expenditure for $54,000 will be reported in the fund financial statements.