Assume the same facts as for questions 1 2 and 3 how much

Reference no: EM13480679

Grants are not necessarily recognized as revenue when they are awarded. Columbus City was awarded a state reimbursement grant of $150,000 to assist its adult literacy program. The following were significant events relating to the grant:

a. The city, which is on a calendar year, was notified of the award in November 2012.

b. During 2013 it expended $30,000 on the literacy program and was reimbursed for $20,000. It expected to receive the balance in January 2014.

c. In 2014 it expended the remaining $120,000 and was reimbursed by the state for the $10,000 owing from 2013 and the amount spent in 2014.

1. Prepare journal entries to record the events in a governmental fund.

2. Suppose instead that the city received the entire $150,000 in cash at the time the award was announced in 2012. How much revenue should the city recognize in its governmental fund statements in each of the three years? Explain.

3. Suppose that, instead of a reimbursement grant, the state awarded the city an unrestricted grant of $150,000, which the city elected to use to support the adult literacy program. The city received the entire $150,000 in cash at the time the award was announced in 2012. How much revenue should the city recognize in its governmental fund statements in each of the three years? Explain.

4. Assume the same facts as for questions 1, 2, and 3. How much revenue should the city recognize in its government-wide statements for each of the three years? Explain.

Reference no: EM13480679

Questions Cloud

Ahi corporation is one of your clients in hawaii the : scenario - ahi corporation is one of your clients in hawaii. the company had a good year last year and owes the irs

Your company provides you with a car you are told only to : your company provides you with a car. you are told only to drive in dade and broward and only to use the car for

The purpose of your trip is to give you the opportunity to : assume you have been given the ability to travel back in time and you are about to set off on a trip to the eighteenth

At ruth company events and transactions during 2012 : at ruth company events and transactions during 2012 included the following. the tax rate for all items is 30.

Assume the same facts as for questions 1 2 and 3 how much : grants are not necessarily recognized as revenue when they are awarded. columbus city was awarded a state reimbursement

Common stock 80000 accumulated other comprehensive income : transformers inc. reported the following net income 120000 preferred dividends declared 20000 common dividend declared

Explain how accounting principles can in certain cases : explain how accounting principles can in certain cases create differences between financial statement information and

Market-probe a market research firm had the following : market-probe a market research firm had the following transactions in june 2014 its first month of operations.june 1

An income statement shows income before income taxes and : an income statement shows income before income taxes and extraordinary items in the amount of 2740000. the income taxes

User Account

All Pages