Sample Journal Entries

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