Question: On June 30 20X2 the end of the fiscal year

On June 30, 20X2, the end of the fiscal year, the Wadsworth Park District prepared the following trial balance for the general fund:

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, 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.
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.

Prepare the adjusting entries to correct the general fundrecords.
View Solution:

Sale on SolutionInn
  • CreatedMay 23, 2014
  • Files Included
Post your question