Week Four - Team A Textbook Problems
Chapter 5: Problem 5-11 – Nonexchange expenditures are the mirror image of nonexchange revenues.
A state government provided several grants to school districts and local governments during its fiscal year ending August 31.
a) Prepare the journal entries that the state would make in fiscal 2013 to record the awards in an appropriate governmental fund. Briefly justify the amount of expenditure that you recognized.
Item 1 - On August 1, 2012, it announced a $2 million grant to a local school district for the purchase of computers. The district can spend the funds upon receipt. On September 15, 2012, the state mailed a check for the full amount to the district. The district spent $1.5 million on computers during fiscal 2013 (i.e., the year ending August 31, 2013) and expects to spend the remaining $0.5 million in fiscal 2014...