Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 18, Problem 18.12P
On June 30, 20X2, the end of the fiscal year, the Wadsworth Park District prepared the following trail balance for the general fund:
![Chapter 18, Problem 18.12P, Adjusting Entries for General Fund [AICPA Adapted] On June 30, 20X2, the end of the fiscal year, the](http://dev-ingestion-image-output.s3-website-us-east-1.amazonaws.com/9781259916977/Chapter-18/images/html_16977-18-18.12p_image001.jpg)
An examination of the records disclosed the following information:
- The recorded estimate of losses for the current year taxes receivable was considered to be adequate.
- 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, the unit received a state grant of $300,000, and used the full amount in payment of contracts pertaining to the construction of the park buildings. Purchases of playground equipment costing $22,000 were paid from general funds.
- 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.
- Outstanding purchase orders not recorded in the accounts at year-end totaled $2,800.
- A physical inventory of supplies at year-end revealed $6,500 of the supplies on hand.
- 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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Chapter 18 Solutions
Advanced Financial Accounting
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