Problem 2

Use the information and the steps in the box below to complete the assignment.

The following is a trial balance of the Camping Builds Character Trust Fund of the City of Nogales as of January 1, 2016:

Cash	$ 100,000
Land	70,000
Buildings	160,000
Accumulated Depreciation		$ 62,000
Accrued Wages Payable		200
Accrued Taxes Payable		1,800
Net PositionRestricted for Camp ScholarshipsExpendable		14,700
Net PositionRestricted for EndowmentNonexpendable		251,300
	$330,000	$330,000

The endowment was in the form of an apartment building. Endowment principal is to be kept intact, and the net earnings are to be used in financing scholarships to not-for-profit organization camps designed to help instill positive character qualities in participants.

The following transactions took place during the year:

Expenses and accrued liabilities paid in cash were as follows:

Heat, light, and power	$ 5,000
Janitors wages (including $150 previously accrued)	3,250
Painting and decorating	3,500
Repairs	1,400
Taxes (including $1,800 previously accrued)	3,500
Management fees	4,250
Miscellaneous expenses	1,400
	$22,300

A land improvement of $2,500 was constructed by an outside contractor who was paid in full.

Apartment rents for 2016 (all collected) amounted to $42,000.

Camping scholarships of $13,000 were paid to finance 2016 summer camp fees.

The following adjustments were made at the close of the year:

Depreciation	$ 6,200
Accrued Taxes	2,000
Accrued Wages	150

Required Steps

1. Prepare general journal entries to record these transactions in the Trust Fund.
2. Prepare a Statement of Net Position as of December 31, 2016, and a Statement of Changes in Net Position for the fiscal year ended December 31, 2016.