Author Question: The city, which has a December 31 year end, was awarded a 400,000 federal grant for a system ... (Read 89 times)

nenivikky · **on:** Jul 5, 2018

The city, which has a December 31 year end, was awarded a 400,000 federal grant for a system hardware upgrade to meet FCC requirements. The grant was awarded and distributed to the fund in June 20X7 .

However, the capital project is not expected to be completed until June 20X8 . As of December 31, 20X7, the Cable Enterprise Fund should
A. Report nonoperating revenues of 400,000.
B. Report nonoperating revenues of 200,000.
C. Report a capital contribution of 400,000.
D. Report a capital contribution of 200,000.

Question 2

On January 8, Damien Lawson transfers ownership of several pieces of office equipment to his new business,JumpStart. When new, these items were worth 72,500 . The fair market value of the equipment is 60,000.Journalize this transfer.

chinwesucks · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

C

Answer to Question 2

Jan. 8 Office Equipment 60,000
Damien Lawson, Capital 60,000
Invested equipment inbusiness.

While Damien may have paid 72,500 for this equipment sometime in the past, itshould be transferred into the company at fair market value (FMV), 60,000.