Valix Finacc vol 1 Problem 15-25

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 15 Problem 15-25

1. Cash                                                                                    30,000,000

            Deferred income-government grant                                                        30,000,000

     Environmental expenses                                                       2,000,000

            Cash                                                                                                            2,000,000

     Deferred income-government grant                                   3,000,000

            Income from government grant (2/20 x 30,000,000)                                   3,000,000

2. Cash                                                                                    40,000,000

            Deferred income-government grant                                                        40,000,000

     Building                                                                               50,000,000

            Cash                                                                                                          50,000,000

     Depreciation                                                                        2,500,000

            Accumulated depreciation (50,000,000 / 20)                                              2,500,000

                                                                                                                                                   

     Deferred income-government grant                                   2,000,000

            Income from government grant (40,000,000 / 20)                                     2,000,000

3.  Land                                                                                   50,000,000

            Deferred income-government grant                                                    50,000,000

     Building                                                                               80,000,000

            Cash                                                                                                      80,000,000

     Depreciation                                                                        3,200,000

            Accumulated depreciation (80,000,000 / 25)                                          3,200,000

     Deferred income-government grant                                   2,000,000

            Income from government grant (50,000,000 / 25)                                  2,000,000

4.  Cash                                                                                   10,000,000

            Income from government grant                                                           10,000,000