On April 30, 2020, Entity A received a $2 million Paycheck Protection Program (PPP) loan. It plans to spend the funds on activities that meet the PPPs loan forgiveness criteria. It spent $1 million on payroll costs on May 30 and June 30, respectively. It filed an application for PPP loan forgiveness. On August 31, it received a notification that the loan is forgiven.

Assume Entity A is Miracle Pizza, a local restaurant chain.

(a) What is the journal entry on April 30 when it received the $2 million?

(b) What is the journal entry on May 30 when it spent $1 million on workers salaries?

(c) What is the journal entry on August 31 when the loan is forgiven?