Youth Empowerment, a private not-for-profit organization with a fiscal year ending on June 30, was Awarded a cost-reimbursement grant form U.S. Department of Labor to provide job training to at-risk youth, Such a young offenders and youth living in high-poverty areas.

Part A. Prepare journal entries for the following events:

1. On May 1, 2020, Youth Empowerment is awarded a Department of Labor grant in the amount of $400,000. The grant is to cover the period June 1, 2020, to may 31, 2021.

2. During June 2020, Youth Empowerment expanded $80,000 providing training activities as described in the grant award. A monthly invoice is sent to the Department of Labor.

Part B. Assume instead that the grant is paid when awarded. Prepare journal entries for the following events:

1. On May 1, 2020, Youth Empowerment is awarded a Department of Labor grant in the amount of $400,000. the grant is cover the period June 1, 2020, to May 31, 2021, and youth Empowerment receives the full amount of the grant proceeds.

2. During June 2020, Youth Empowerment expanded $80,000 Providing training activities as described in the grant award.