Book Consider the following two scenarios: Case A On 27 February 20X7, JJJ Inc. upgraded its windows and doors in order to make the building green-certified. The upgrades have a 20-year useful life. JJJ will receive a 30% rebate on total cost if it can demonstrate reduced utilities draw by 60% over a 5-year period. The funds are received up front, upon submission of the costs. A report is filed annually over the next 5 years. Total amount spent on upgrades: $5,180,000. Case B RBH Inc. was provided with a $400,000 forgivable loan to help offset increased sick pay that was mandated by the government. The loan is intended to provide relief for the first 2 years of the program. Required: 1. Prepare the journal entries: 1. Under both the net and the deferral method 2. If it is netted against expenses or recorded as income (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 Record the $5,180,000 cost incurred on building upgrades under the net method.

Consider the following two scenarios: Case A On 27 February 207,JJJ Inc. upgraded its windows and doors in order to make the building green-certified. The upgrades have a 20 year useful life. JJJ will receive a 30% rebate on total cost if it can demonstrate reduced utilities draw by 60% over a 5 year period. The funds are received up front, upon submission of the costs. A report is filed annually over the next 5 years. Total amount spent on upgrades; $5,180,000 Case B RBH Inc. was provided with a $400,000 forgivable loan to help offset increased sick pay the was mandoted by the government. The loan is intended to provide relief for the first 2 years of the program. Required: 1. Prepare the journal entries: 1. Under both the net and the deferral method 2 . If it is netted against expenses of recorded as income (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.)