Author Question: County A was awarded a 900,000 expenditure-driven grant in year 1 for a capital project that is ... (Read 64 times)

berenicecastro · **on:** Jul 6, 2018

County A was awarded a 900,000 expenditure-driven grant in year 1 for a capital project that is expected to take three years to complete. Project expenditures are financed by weekly cash draws from a local bank.

As of the end of Year 1 the county had incurred expenditures of approximately 50,000 . The county should recognize Capital Projects Fund revenue at the end of Year 1 in the amount of
a. 0
b. 50,000
c. 300,000
d. 900,000

Question 2

What is the journal entry to record the receipt of payment on June 15th for the following: June 1st, merchandise sold on account in the amount of 525, credit terms 1/10, n/30.
a. Accounts Receivable 525 DR
Cash 525 CR
b. Cash 525 CR
Accounts Receivable 525 CR
c. Accounts Receivable 519.75 DR
Sales Discount 5.25 DR
Cash 525 CR
d. Cash 525 DR
Sales Discount 5.25 CR
Accounts Receivable 519.75 CR