The City's municipal golf course had the following transactions.
1.Received a beautification (operating)grant from the state for $600,000.Received cash of $600,000.
2.Incurred and paid qualifying expenses under the state grant program in (1)above of $280,000.
3.Incurred and paid construction costs on an uncompleted clubhouse for $1,200,000.
4.Received $1,000,000 cash from a grant to assist with construction costs for the clubhouse.
Required:
Given that the golf course is operated based on user fees for upkeep,prepare the necessary journal entries for each of these transactions.

Question

Quizplus · Accepted Answer

The Answer of The City's municipal golf course had the following transactions.
1.Received a beautification (operating)grant from the state for $600,000.Received cash of $600,000.
2.Incurred and paid qualifying expenses under the state grant program in (1)above of $280,000.
3.Incurred and paid construction costs on an uncompleted clubhouse for $1,200,000.
4.Received $1,000,000 cash from a grant to assist with construction costs for the clubhouse.
Required:
Given that the golf course is operated based on user fees for upkeep,prepare the necessary journal entries for each of these transactions.

The City's Municipal Golf Course Had the Following Transactions