Nonprofit Accounting Basics
Sample Journal Entries for Government Grants
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Originally Posted: June 6, 2009
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The following are the entries necessary for cost-reimbursable government grant (assuming the grant is determined to be an exchange transaction):
Upon award:
NO ENTRY NEEDED
As expenses are incurred:
DR Expense account
CR Accounts payable
DR Grant revenue receivable
CR Grant revenue
As reimbursements re received;
DR Cash
CR Grant revenue receivable