You have been assigned by the town of Papillion to examine its June 30, 20X1, balance sheet. You are the first CPA to be engaged by the town, and you find that acceptable methods of municipal accounting have not been employed. The town clerk stated that the books had not been closed and presented the following preclosing trial balance of the general fund as of June 30, 20X1:

1. The estimated losses of \(\$ 18,000\) for current-year taxes receivable were determined to be a reasonable estimate. The delinquent taxes allowance account should be adjusted to \(\$ 8,000\), the remaining delinquent taxes.
2. Included in the Revenue account is a credit of \(\$ 27,000\), representing the value of land donated by the state as a grant-in-aid for construction of a municipal park.
3. Operating supplies ordered in the prior fiscal year and chargeable to that year were received, recorded, and consumed in July 20X0. The outstanding purchase orders for these supplies, which were not recorded in the accounts on June \(30,20 \times 0\), amounted to \(\$ 8,800\). The vendors' invoices for these supplies totaled \(\$ 9,400\). Appropriations lapse one year after the end of the fiscal year for which they are made.
4. Outstanding purchase orders on June \(30,20 \times 1\), for operating supplies totaled \(\$ 2,100\). These purchase orders were not recorded on the books.
5. The special assessment bonds were sold in June 20X1 to finance a street-paving project. No contracts have been signed for this project. and no expenditures have been made from the capital projects fund. The city is obligated for the bonds if the property owners default.
6. The balance in the Revenue account includes credits for \(\$ 20,000\) for a note issued to a bank to obtain cash in anticipation of tax collections and for \(\$ 1,000\) for the sale of scrap iron from the town's water plant. The note was still outstanding on June 30, 20X1. The operations of the water plant are accounted for in the water fund.
7. The Expenditures-Building Addition Constructed account balance is the cost of an addition to the town hall building. This addition was constructed and completed in June 20X1. The general fund recorded the payment as authorized.
8. The Expenditures-Serial Bonds Paid account reflects the annual retirement of general obligation bonds issued to finance the construction of the town hall. Interest payments of \(\$ 7,000\) for the bond issue are included in other expenditures.
\section*{Required}

a. Prepare the formal adjusting and closing journal entries for the general fund for the fiscal year ended June 30, 20X1.

b. The foregoing information disclosed by your examination was recorded only in the general fund even though other funds were involved. Prepare the formal adjusting journal entries for any other funds involved.

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Debit Credit Cash $150,000 Taxes Receivable-Current Year 59.200 Allowance for Uncollectibles-Current $ 18,000 Taxes Receivable-Delinquent 8.000 Allowance for Uncollectibles-Delinquent 10,200 Estimated Revenues Control 310,000 Appropriations Control 348,000 Donated Land 27.000 Expenditures-Building Addition Constructed 50,000 Expenditures-Serial Bonds Paid 16.000 Other Expenditures 280.000 Special Assessment Bonds Payable 100,000 Revenue Accounts Payable 354.000 26,000 Unreserved Fund Balance 82,000 Budgetary Fund Balance Unreserved 38.000 Total $938.200 $938,200