Dealing with grants #2


F

Fred Marshall

From Tom Healy's response, I imagine that a *reimbursable* grant would be
done like
this:

When you receive the grant commitment, you record:

Grant Receivable (Class "Grant A") XXX.XX (an asset)
Unearned Grant XXX.XX (Class "Grant A") (a liability)

When you spend for the grant, record:

Expense XX.XX (Class "Grant A")
Cash XX.XX
Unearned grant XX.XX (Class "Grant A")
Grant Receivable (an income account) XX.XX (Class "Grant A")

***Or, if you want to be a little more complete:

When you receive the grant commitment, you record:

Grant Commitment (Class "Grant A") XXX.XX (an asset)
Unearned Grant XXX.XX (Class "Grant A") (a liability)

When you spend for the grant, record:

Expense XX.XX (Class "Grant A")
Cash XX.XX
Unbilled grant XX.XX (Class "Grant A") (an asset)
Grant Commitment (an income account) XX.XX (Class "Grant A") (an
asset)

When you invoice the grantor according to reductions in Grant Commitment,
record:

Accounts Receivable xx.xx (Class "Grant A") (an asset)
Unbilled grant xx.xx (Class "Grant A") (an asset)

When you receive the grant funds:

Cash xx.xx (Class "Grant A")
Accounts Receivable (Class "Grant A")

--------------------

Does this make sense?

Thanks,

Fred
 
Ad

Advertisements

F

Fred Marshall

oops! No wonder I didn't get an answer to "does that make sense?" because
it didn't.
I might better have said:

From Tom Healy's response, I imagine that a *reimbursable* grant would be
done like
this:

When you receive the grant commitment, you record:

Grant Receivable (Class "Grant A") XXX.XX +(an asset)
Unearned Grant XXX.XX (Class "Grant A") +(a liability)

When you spend for the grant, record:

Expense XX.XX (Class "Grant A")
Cash XX.XX
Unearned grant XX.XX (Class "Grant A") -(the asset)
Grant Receivable XX.XX (Class "Grant A") -(the liability)

***Or, if you want to be a little more complete:

When you receive the grant commitment, you record the same as above:

Grant Receivable (Class "Grant A") XXX.XX +(an asset)
Unearned Grant XXX.XX (Class "Grant A") +(a liability)

When you spend for the grant, record:

Expense XX.XX (Class "Grant A")
Cash XX.XX
Unearned grant XX.XX (Class "Grant A")
Grant Receivable XX.XX (Class "Grant A")
Income XX.XX (Classified or not??)
Accounts Receivable xx.xx (Class "Grant A")

When you receive the grant funds:

Cash xx.xx
Accounts Receivable (Class "Grant A")

--------------------

Does *this* make sense?

Thanks,

Fred
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top