The amount of revenue to be recognized from grants depends on the type of grant. The following information relates to three grants that the town of College Hills received from the state during its fiscal year ending December 31, 2012:
a. A cash grant of $200,000 that must be used to repair roads;
b. $150,000, in cash, of a total grant of $200,000, to reimburse the town for actual expenditures incurred in repairing roads. During the year, the town incurred $150,000 in allowable repair costs;
c. A cash entitlement grant of $200,000 that is intended to supplement the town’s 2013 budget and must be expended in that year.
1. Prepare journal entries to record the three grants in a governmental fund.
2. What amount of revenue should be reported for each grant in the town’s government-wide statement of activities for 2012? Where on that statement should these revenues most likely be reported?

  • CreatedApril 29, 2015
  • Files Included
Post your question