Prepare Journal Entries to Record the Following Grant-Related Transactions of an Enterprise

Essay

Prepare journal entries to record the following grant-related transactions of an Enterprise Fund.
1.Received an operating grant in cash from the state,$2,500,000.
2.Incurred and paid qualifying operating expenses on the state grant program,$1,600,000.
3.Received a federal grant to finance construction of a plant,$4,500,000 (cash received in advance).
4.Incurred and paid construction costs on the plant,$3,000,000.The plant is not completed.