Question

You are the Controller for Dane College, a not-for-profit entity. Based on the events listed below that occurred during the year, you need to make the appropriate accounting journal entries for the fiscal year ended June 30, 2020.

f. During the year, the College received notice of a $100,000 grant from the federal government. The purpose of the grant is to conduct research to compare the effect of different budgeting techniques to the performance of government employees. During the year, the College spent $8,000 on printing questionnaires and $12,000 on faculty salaries for activities directly related to the grant. As of June 30th, the College had not yet received any cash from the federal government.

Answer 1

1: Bank A/c Dr. $ 100,000

To Grant A/c. $ 100,000

( Being grant received from federal government)

2: Printing A/c. Dr. $ 8,000

Salaries A/c. Dr. $ 12,000

To Cash A/c. $ 20,000

( Being printing expense and salaries of staff doing work on research is paid)