Question
Problem 1 On January 1, 2021 an entity received a grant amounting to P10, 000,000 from the government for the purpose of defraying safety and
Problem 1
On January 1, 2021 an entity received a grant amounting to P10, 000,000 from the government for the purpose of defraying safety and environmental expenses over the period of three years.
The safety and environmental expenses will be incurred by the entity as follows
2021 2,000,000
2022 3,000,000
2023 1,000,000
Total 6,000,000
Required: Provide journal entries relating to the government grant
Problem 2
The entity received P5, 000,000 cash from the government to compensate massive fire loss.
Required: Provide journal entries related to the grant.
Problem 3
On January 1, 2021, an entity received P6, 000,000 as government grant to purchase a building that cost P25, 000,000. The useful life of the building is 5 years with no residual value. On January 1, 2023 the entire amount of the government grant becomes repayable due to failure in following all the necessary conditions of the government grant.
Required: Prepare journal entry regarding the grant under the deferred income approach and deduction from asset approach.
Pls complete answer 1-3 thanks!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started