Kevin is tasked with preparing the journal entries for Year 1 related to the equipment purchased and the government grant. To date, nothing has been recognized related to the equipment or the related government grant (Appendix II and III). What should Kevin do?
1) Recognize the equipment and the government grant in the journal entries
2) Ignore the equipment and the government grant in the journal entries
3) Seek guidance from a supervisor or accounting expert
4) Wait for further instructions