29 Jun Question In January 2014, Granite
Question
In January 2014, Granite Hills State University received a $500,000 government grant to be used to finance a study to determine the effects of the federal stimulus bill on the regional economy. During 2014, expenditures of $125,000 were incurred and paid on the research project.
1. Record these transactions in the accounts of Granite Hills State University, and explain how the effects of the transactions should be reported in the college’s financial statements.
2. Repeat requirement (1) under the assumption that the grant was to finance plant expansion.
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