Nonexchange expenditures are the mirror image of nonexchange revenues.

A. Prepare the journal entries that the state would make in fiscal 2013 to
record the awards in an appropriate governmental fund. Briefly justify the
amount of expenditure that you recognized.

The following table shows the journal entries for the above events.
|Date |Account |Debit |Credit |
|Aug 1 |Grant |$2,000,00| |
| | |0 | |
| |Computers | |$2,000,00|
| | | |0 |
|Sept. 15 |Computers |$1,500,00| |
| | |0 | |
| |Cash | |$1,500,00|
| | | |0 |
|Sept 15 |Grant |$10,000,0| |
| | |00 | |
| |Equipment | |$10,000,0|
| | | |00 |
| | | |20,000 |
|Year 2013 |Allowance |$8,000,00| |
| | |0 | |
| |Accounts Payable| |$8,000,00|
| | | |0 |
|Year 2014 |Reimbursement |$7,000,00| |
| | |0 | |
| |Accounts Payable| |$7,000,00|
| | | |0 |
|Sept 15 |Grants |$5,000,00| |
| | |0 | |
| |Cash | |$5,000,00|
| | | |0 |
|Jan 14 |Accounts payable|$1,000,00| |
| | |0 | |
| |Cash | |$,1000,00|
| | | |0 |
| | | | |


The amount of expenditure that I justify is $2 million +$10 million
+$8million +$5 million =$25 million