Fort Steven School District began the fiscal year July 1, XXXX, with the following account balances in the general fund:

The following transactions occurred during July:

a. Local property taxes of $350,000 were assessed and levied.

b. The district borrowed $120,000 from the First National Bank of Fort Steven by means of tax anticipation warrants.

c. The district purchased equipment on account in the amount of $40,000.

d. The district paid regular instructional employees $114,500.

e. The district received $370,000 for payment of property taxes that were previously assessed and levied.
(Note: Tax anticipation warrants must be paid as soon as tax monies are received.)

f. The district paid for equipment received in transaction (c).
g. The district paid regular custodial employees $23,750.
h. The district purchased equipment on account in the amount of $80,000.
i. Defective equipment in the amount of $15,000 was returned for credit.
j. The district paid $45,000 on outstanding accounts payable.
Assume the chart of accounts for the school district consists of the following:
Assets (101, 111, 121)
Liabilities (421, 423)
Unreserved fund balance (730)
Revenue (1110)
Expenditures (object codes 110, 739)
Instructions:

Record the beginning balances and the transactions for the month of July in the general journal.
Post the general journal transactions to the account in the general ledger.
Determine the account balances and prepare a trial balance as of July 31, XXXX.

Transcribed Image Text:

101 Cash 111 Investments 121 Taxes receivable $14,750 175,000 23,000 730 Unreserved fund balance 212,750