Problem

Adjusting Entries for General Fund [AICPA Adapted]On June 30, 20X2, the end of the fiscal...

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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