The Markham City School System began the year with assets of $125,000, liabilities of $30,000 and a fund balance of $95,000 in the general fund. During the year that ended on June 30, XXXX, the following transactions were completed:

a. Property taxes were assessed and levied in the amount of $75,000.

b. A general state aid payment of $70,000 was received.

c. A loan was obtained from the Markham City State Bank in the amount of $35,000.

d. Tuition in the amount of $3,300 was collected.

e. School property was sold for $5,500.

f. Teacher salaries of $45,000 were paid.

g. Equipment in the amount of $123,000 was purchased on account.

h. Investments of $40,000 were sold for $30,000. (Loss on investments is an expenditure.)

i. Heating costs of $12,000 were paid.

j. An auditor’s fee of $8,000 was paid.

Instructions:

Record the beginning balances and enter the transactions in T-accounts.

Prepare a trial balance.