[dess213]

The question in the MCQ is:

The Dunstown County general fund received a notice of a federal grant award for an expenditure-driven (reimbursement) grant in the amount of $1,000,000. Included with the notice was an advance of $250,000. During the year, the County incurred $400,000 of qualifying eligible grant expenditures, and no additional money had been received from the grantor.

What would be the amount of deferred revenues reported at the end of the year by the general fund?

The answer is $0, but I want to make sure I got it correctly.

Grant Advance Received

Dr: Cash $250

Cr: Deferred Grant Revenue $250

Grant Expenses used:

Dr: Expenses $400

Cr: A/P $400

Dr: Deferred Grant Revenue $250

Dr: Grant Revenue Receivable $150

Cr: Grant Revenue $400

Thanks!

FAR-83
AUD-90
BEC-83
REG-80

I'M DONE!!