In 2008 a faculty member at a private college received a grant from the National Science Foundation to conduct basic research on tree frogs in the amount of $350,000. Expenses associated with the grant totaled $225,000 in 2009. In the Statement of Activities for 2009, the college should show:

Question

Quizplus · Accepted Answer

The grant received is considered Temporarily Restricted Net Assets as it has specific conditions on how the funds should be used. Since expenses related to the grant were incurred in 2009, the expenses should be recorded in Unrestricted Net Assets and a decrease in Temporarily Restricted Net Assets should be recorded for the same amount ($225,000) to show that the grant has been used for its intended purpose. Therefore, option D is the correct answer.

In 2008 a Faculty Member at a Private College Received