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Consider the following two scenarios: Case A On 27 February 20X7, JJJ Inc. upgraded...

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Accounting

Consider the following two scenarios:
Case A On 27 February 20X7, JJJ Inc. upgraded its windows and doors in order to make the building green-certified. The upgrades have a 20-year useful life. JJJ will receive a 25% rebate on total cost if it can demonstrate reduced utilities draw by 40% over a 5-year period. The funds are received up front, upon submission of the costs. A report is filed annually over the next 5 years. Total amount spent on upgrades: $4,880,000.
Case B RBH Inc. was provided with a $250,000 forgivable loan to help offset increased sick pay that was mandated by the government. The loan is intended to provide relief for the first 2 years of the program.
Required:
Prepare the journal entries:
Under both the net and the deferral method
If it is netted against expenses or recorded as income
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
\table[[,No,Transaction,General Journal,Debit,Credit],[i,1,Case A,Building updates,4,880,000,],[,,Cash,,4,880,000
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