Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
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Chapter 18, Problem 44P
To determine
Determine the given statement is true or false with a brief explanation.
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The College of Central North (a private school) has the following events and transactions:
On January 1, Year 1, the board of trustees voted to restrict $1.9 million of previously unrestricted investments to construct a new football stadium at some future time.
On April 1, Year 1, Dr. Johnson gives the school $4 million in investments that is to be held forever, but all subsequent cash income is to be used to help pay for construction (and, later, maintenance) of the football stadium.
On December 31, Year 1, the investments in (b) generate $500,000 in cash interest revenue. In addition, the investments went up in value by $44,000.
On January 1, Year 2, the school builds a football stadium with the restricted $2.4 million in funds. Cash is paid. The stadium has a 20-year life and no salvage value.
On January 2, Year 2, Dr. Johnson buys a seat for the current year on the 50-yard line of the stadium for $30,000 in cash when this seat’s fair value is actually $12,000.
On January 3, Year…
The College of Central North (a private school) has the following events and transactions:a. On January 1, Year 1, the board of trustees voted to restrict $1.9 million of previously unrestricted investments to construct a new football stadium at some future time.b. On April 1, Year 1, Dr. Johnson gives the school $4 million in investments that is to be held forever, but all subsequent cash income is to be used to help pay for construction (and, later, maintenance) of the football stadium.c. On December 31, Year 1, the investments in (b) generate $500,000 in cash interest revenue. In addition, the investments went up in value by $44,000.d. On January 1, Year 2, the school builds a football stadium with the restricted $2.4 million in funds. Cash is paid. The stadium has a 20-year life and no salvage value.e. On January 2, Year 2, Dr. Johnson buys a seat for the current year on the 50-yard line of the stadium for $30,000 in cash when this seat’s fair value is actually $12,000.f. On…
Tarhata Company received a government grant of 2,000,000 related to a factory building purchased in January 2021 from an industrialist identified by the government.
If the entity did not purchase the building, which was located in the slums of the city, it would have been repossessed by the government agency.
The entity purchased the building for 12,000,000. The useful life of the building is 5 years with no residual value.
On January 1, 2022, the entire amount of the government grant became repayable by reason of non compliance with conditions attached to the grant.
Required:
Prepare journal entries assuming the government grant is accounted for using:
Deferred income approach
Deduction from asset approach
Chapter 18 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
Ch. 18 - Prob. 1QCh. 18 - Prob. 2QCh. 18 - Prob. 3QCh. 18 - What are temporarily restricted net assets?Ch. 18 - What are permanently restricted net assets?Ch. 18 - Prob. 6QCh. 18 - Prob. 7QCh. 18 - Prob. 8QCh. 18 - Prob. 9QCh. 18 - Prob. 10Q
Ch. 18 - Prob. 11QCh. 18 - Prob. 12QCh. 18 - Prob. 13QCh. 18 - Prob. 14QCh. 18 - Prob. 15QCh. 18 - When should membership dues be considered revenue...Ch. 18 - Prob. 17QCh. 18 - Prob. 18QCh. 18 - Prob. 19QCh. 18 - Prob. 20QCh. 18 - Prob. 21QCh. 18 - Prob. 1PCh. 18 - Prob. 2PCh. 18 - Prob. 3PCh. 18 - Prob. 4PCh. 18 - A donor gives Charity 1 50,000 in cash that it...Ch. 18 - Prob. 6PCh. 18 - Prob. 7PCh. 18 - Prob. 8PCh. 18 - Prob. 9PCh. 18 - Prob. 10PCh. 18 - Prob. 11PCh. 18 - Prob. 12PCh. 18 - Prob. 13PCh. 18 - Prob. 14PCh. 18 - Prob. 15PCh. 18 - Prob. 16PCh. 18 - Prob. 17PCh. 18 - Prob. 18PCh. 18 - Prob. 19PCh. 18 - Prob. 20PCh. 18 - Prob. 21PCh. 18 - Prob. 22PCh. 18 - Prob. 23PCh. 18 - Prob. 24PCh. 18 - Prob. 25PCh. 18 - Prob. 26PCh. 18 - Prob. 27PCh. 18 - Prob. 28PCh. 18 - Prob. 29PCh. 18 - Prob. 30PCh. 18 - Prob. 31PCh. 18 - Prob. 32PCh. 18 - Prob. 33PCh. 18 - Prob. 34PCh. 18 - Prob. 35PCh. 18 - Prob. 36PCh. 18 - Prob. 37PCh. 18 - Prob. 38PCh. 18 - Prob. 39PCh. 18 - A private not-for-profit entity is working to...Ch. 18 - Prob. 41PCh. 18 - The University of Danville is a private...Ch. 18 - Prob. 43PCh. 18 - Prob. 44PCh. 18 - Prob. 45PCh. 18 - Prob. 46PCh. 18 - Prob. 47PCh. 18 - Prob. 48PCh. 18 - Prob. 49PCh. 18 - At the beginning of Year 1, the entity above...Ch. 18 - Prob. 51PCh. 18 - Prob. 52PCh. 18 - Prob. 53PCh. 18 - Prob. 54PCh. 18 - Prob. 1DYSCh. 18 - Prob. 2DYSCh. 18 - Prob. 3DYSCh. 18 - Prob. 4DYSCh. 18 - Prob. 5DYSCh. 18 - Prob. 6DYS
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