The town of Winona uses a general fund. The trial balance for December 31 of the current year is recorded on a work sheet in the Working Papers. The following adjustment information is available.

An estimated 20% of the interest revenue due will not be collected.
The reserve for encumbrances for the current year is reclassified to prior year status.

Instructions:

1. Analyze the adjustment information and record the adjustments on the work sheet.

2. Complete the work sheet.

Transcribed Image Text:

Supplies Inventory Interest Revenue Due but not Collected Adjustment Information, December 31 $3,534.00 2,900.00