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Question - The San Diego Zoo Fund is awarded a capital grant of $2,000,000 from the state in 2015 for building a habitat for the silver back gorillas. Half is available for use in the current year to construct the habitat. The other half is to purchase the gorillas from the government of South Africa and is not available until the habitat is completed. An immediate cash remittance is received from the state in the amount of $600,000. A contract is awarded to "We R Animals" for $475,000 to build the habitat. Construction is 60% completely and invoices for land improvements and building construction on the habitat contract received to date total $285,000.
Based on the transactions described above, prepare the entries using the following assumptions - Prepare the 5 journal entries for a governmental fund.
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