LIST OF ACCOUNTS TO CHOOSE FROM:

Cash

Deferred Grant Revenue- USDA

Expenses- Farm Maintenance

Grant Revenue- USDA

Payable to USDA- Owed for Grant Remainder

No Debit Entry Required

No Credit Entry Required

Accounting for Grant Revenue The U.S. Department of the Agriculture (USDA) awards a one-year $2,000,000 grant to Eddings University, a public university. The grant is to be used for projects in the agricultural business program. Eddings University will use the grant to maintain its educational farms. The entire grant award is received on July 1, the first day of Eddings University's fiscal year. The grant requires two periodic reports that demonstrate expenses consistent with the grant's purpose. Any portion of the grant award not used for the specified purpose must be returned to the U.S. Department of Agriculture, and the grant is explicitly identified as expenditure-driven. Record entries for the following events and transactions: 1. The receipt of the award. 2. The expenditure of $800,000 during the first six months for farm maintenance. (Farm maintenance expenses are consistent with the grant's purpose.) 3. The expenditure of an additional $1,100,000 through the remaining six months of the fiscal year, also for farm maintenance. Eddings University was not able to spend the remaining $100,000 associated with the grant. If no adjustment is necessary, select 'No debit (or credit) entry needed in the account fields and enter O in the amount fields. Account Debit Credit 0 O