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In December 2 0 2 0 , the Consumer Association of America ( CAA ) , a not for profit research organization, received a $
In December the Consumer Association of America CAA a notforprofit research organization, received a $ million grant from the Sporting Goods Manufacturers Association SGMA to develop a football helmet that will provide better protection against head injuries. The grant was intended to cover $ million of direct costs and $ million of overhead costs. The grant contract stipulated that the SGMA would make its payment to the CAA upon receiving invoices from CAA for the actual direct costs incurred. It further required that the research results be reported only to the SGMA and not be made publicly available. Each reimbursement payment for direct costs incurred would also include an appropriate proportion of indirect costs ie an additional $ for each $ of direct costs
In the CAA carried out and completed the research for which it contracted. Direct costs were, as estimated, $ million. It submitted the necessary invoices and received payment in full.
Par Prepare required journal entries for and Be sure to indicate whether each entry should be made to a restricted by donor fund or not restricted by donor fund. You need not, however, record the indirect costs themselves inasmuch as by their very nature, they are not tied directly to the grant
Part Assume instead that in December the CAA received from the National Sports Association NSA a pledge of $ million. The donation is for research relating to football helmets. The NSA is a notforprofit agency, and the results of any research will be in the public domain. In January the CAA received the contribution. Throughout the remainder of it carried out its footballrelated research incurring $ million of direct costs Prepare the required journal entries for and Is the contriklution donor restricted yesno
Record the required journal entries for each year. If no entry is needed, simply write no entry" in the account name column and $ in the debitscredits columns.
Record the required journal entries for each year. If no entry is needed, simply write no entry" in the account name column and $ in the debitscredits columns.
Cells shared in yellow must be filled in by you! and indicate whether each entry should be made to a fund that is restricted by a donor or not.
Instruction; Please fill in the yellow areas of the Excel image. The hints for each journal entries are below the highlighted yellow areas where you fill in the answers.
Will give thumbs up for following the insturctions! Thanks a ton!
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