Clarion Township was approved for a grant from the federal government. The grant
ID: 2464283 • Letter: C
Question
Clarion Township was approved for a grant from the federal government. The grant provides for reimbursement up to $200,000 for expenditures incurred to weatherize homes for low-income persons. Upon notification that the grant had been approved, but before weatherization activities have begun, Clarion Township should:
Debit Due from Federal Government for $200,000.
Credit Deferred Inflow of Resources for $200,000.
Both Debit due from Federal Government for $200,000 and Credit Deferred Inflow of Resources for $200,000.
Clarion Township was approved for a grant from the federal government. The grant provides for reimbursement up to $200,000 for expenditures incurred to weatherize homes for low-income persons. Upon notification that the grant had been approved, but before weatherization activities have begun, Clarion Township should:
Explanation / Answer
Clarion Township should not make a journal entry.
Conclusion:- No Journal entry.