Adjusting Entries for General Fund [AICPA Adapted]
On June 30, 20X2, the end of the fiscal year, the Wadsworth Park District prepared the following trial balance for the general fund:
| Debit | Credit |
Cash | $ 47,250 |
|
Taxes Receivable—Current | 31,800 |
|
Allowance for Uncollectibles—Current |
| $ 1,800 |
Temporary Investments | 11,300 |
|
Inventory of Supplies | 11,450 |
|
Buildings | 1,300,000 |
|
Estimated Revenues Control | 1,007,000 |
|
Appropriations Control |
| 1,000,000 |
Revenue—State Grants |
| 300,000 |
Bonds Payable |
| 1,000,000 |
Vouchers Payable |
| 10,200 |
Expenditures | 848,200 |
|
Debt Service from Current Funds | 130,000 |
|
Capital Outlays (Equipment) | 22,000 |
|
Revenue—Taxes |
| 1,008,200 |
Fund Balance—Unassigned |
| 81,800 |
Budgetary Fund Balance—Unassigned |
| 7,000 |
Total | $3,409,000 | $3,409,000 |
An examination of the records disclosed the following information:
1. The recorded estimate of losses for the current year taxes receivable was considered to be adequate.
2. The local governmental unit gave the park district 20 acres of land to be used for a new community park. The unrecorded estimated value of the land was $50,000. In addition, a state grant of $300,000 was received, and the full amount was used in payment of contracts pertaining to the construction of the park buildings. Purchases of playground equipment costing $22,000 were paid from general funds.
3. Five years ago, a 4 percent, 10-year sinking fund bond issue in the amount of $1,000,000 for constructing park buildings was sold; it is still outstanding. Interest on the issue is payable at maturity. Budgetary requirements of a contribution of $130,000 to the debt service
fund were met. Of this amount, $100,000 represents the fifth equal contribution for principal repayment.
4. Outstanding purchase orders not recorded in the accounts at year-end totaled $2,800.
5. A physical inventory of supplies at year-end revealed $6,500 of the supplies on hand.
6. Except where indicated to the contrary, all recordings were made in the general fund.
Required
Prepare the adjusting entries to correct the general fund records.
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