Question

If a private university receives $1,000,000 in the current fiscal year as a grant restricted for...

If a private university receives $1,000,000 in the current fiscal year as a grant restricted for a specific research project and makes expenditures amounting to $400,000 during the current fiscal year properly chargeable to the grant, how much should be reported as revenues in the current fiscal year? Explain.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Assuming the grant is considered a nonexchange transaction, then the entire $1,000,000 should be reported as revenue. Gifts, provided all eligibility requirements have been met.

If the grant is determined to be an exchange transaction (i.e. the research is being provided for the benefit of the government), then only the amount expected for the purpose described in the grant would be recognized as revenue in fiscal year. the remainder would be reflected in deferred revenue.

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. At the beginning of its 2019 fiscal year, Sawyer city has general capital assets of...
1. At the beginning of its 2019 fiscal year, Sawyer city has general capital assets of $1,200,000 and accumulated depreciation on these assets of $400,000. What worksheet journal entry does Sawyer City need to make to prepare its fiscal year ending 2019 government-wide financial statements? A) Capital Assets                                                                             1,200,000               Expenditures 1,200,000 B) Capital Assets                                                                              1,200,000               Accumulated Depreciation 400,000               Expenditures- capital outlay 800,000 C)Capital Assets                                                                               1,200,000               Accumulated Depreciation 400,000               Net position 800,000 D)...
In the current year, the building occupied by Surf Beach City’s Culture and Recreation Department suffered...
In the current year, the building occupied by Surf Beach City’s Culture and Recreation Department suffered severe structural damage as a result of a hurricane. It had been 48 years since a hurricane had hit the Rainbow City area, although hurricanes in Rainbow City’s geographic area are not uncommon. The building had been purchased 10 years earlier at a cost of $2,000,000 and had accumulated depreciation of $500,000 as of the date of the hurricane. Based on a restoration cost...
Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand...
Early in its fiscal year ending December 31, 2018, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on January 1 with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $880,000. San Antonio paid $240,000 and signed a noninterest bearing note requiring the company to pay the remaining $640,000 on January 1, 2020. An interest rate of 10% properly reflects the time value...
On May 1, Donovan Company reported the following account balances: Current assets $ 101,000 Buildings &...
On May 1, Donovan Company reported the following account balances: Current assets $ 101,000 Buildings & equipment (net) 234,000 Total assets $ 335,000 Liabilities $ 38,000 Common stock 150,000 Retained earnings 147,000 Total liabilities and equities $ 335,000 On May 1, Beasley paid $474,600 in stock (fair value) for all of the assets and liabilities of Donovan, which will cease to exist as a separate entity. In connection with the merger, Beasley incurred $17,600 in accounts payable for legal and...
Case 4b: Consultancy research for a not for profit organisation Karen Handley, Oxford Brookes University Thomas’s...
Case 4b: Consultancy research for a not for profit organisation Karen Handley, Oxford Brookes University Thomas’s work placement is at a management consultancy firm, Spectrum, which provides strategic and financial advice to organisations in the UK not-for-profit (NFP) sector. The NFP sector has different segments, the largest of which includes organisations which have a public interest objective, and which are known as charities. These are typically organisations dedicated to improving the quality of life for specific groups or individuals (e.g....
During the current year, Marlene, Nancy and Olive formed a new S Corporation. Solely in exchange...
During the current year, Marlene, Nancy and Olive formed a new S Corporation. Solely in exchange for stock, Marlene and Nancy contributed appreciated property, while Olive contributed services. The exchanges of Marlene and Nancy will be nontaxable if: Olive receives 30% of the stock Olive receives 80% of the stock Olive receives 15% of the stock Marlene and Nancy together receive 50% of the stock In June of 2018, Alice acquired her only machine for $30,000 to use in her...
The City of Pfeiffer starts the year of 2017 with the general fund and an enterprise...
The City of Pfeiffer starts the year of 2017 with the general fund and an enterprise fund. The general fund has two activities: education and parks/recreation. For convenience, assume that the general fund holds $123,000 cash and a new school building costing $1 million. The city utilizes straight-line depreciation. The building has a 20-year life and no salvage value. The enterprise fund has $62,000 cash and a new $600,000 civic auditorium with a 30-year life and no salvage value. The...
The City of Pfeiffer starts the year of 2017 with the general fund and an enterprise...
The City of Pfeiffer starts the year of 2017 with the general fund and an enterprise fund. The general fund has two activities: education and parks/recreation. For convenience, assume that the general fund holds $123,000 cash and a new school building costing $1 million. The city utilizes straight-line depreciation. The building has a 20-year life and no salvage value. The enterprise fund has $62,000 cash and a new $600,000 civic auditorium with a 30-year life and no salvage value. The...
Project Details The Acme Gadget Company designs and manufactures consumer gadgets. Last year, Acme began development...
Project Details The Acme Gadget Company designs and manufactures consumer gadgets. Last year, Acme began development of three prototype gadgets with the intention of bringing all three to market. However, a recent downturn in the economy has forced Acme to reconsider due to decreased consumer demand that is projected to remain low for 2-3 years. As such, Acme will bring only one of the prototypes to market. They’ve hired a consulting firm to advise which prototype to bring to market....
Rovio Entertainment is a Finnish developer, publisher and distributor of video games headquartered in Espoo, Finland....
Rovio Entertainment is a Finnish developer, publisher and distributor of video games headquartered in Espoo, Finland. Rovio was founded in 2003 by three students from Helsinki University of Technology following a victory in a developers’ competition with a multiplayer game called King of the Cabbage World, later renamed Mole War. Rovio’s games include Angry Birds, Bad Piggies, Shakira and Fruit Nibblers. Rovio produced The Angry Birds Movie and launched an entertainment channel, Toons.TV (discontinued in 2017). Rovio licenses its Angry...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT