ACCOUNTING FOR GOVERNMENTAL AND NONPROFIT ORGANIZATIONS HANDOUT PROBLEM 9 Score Problem (10 points). The following is a trial balance of the Camping Builds Character Trust Fund of the City of Mahogany at January 1, 20X6. Credit CITY OF MAHOGANY CAMPING BUILDS CHARACTER TRUST FUND TRIAL BALANCE AT JANUARY 1, 20X6 Debit Cash $ 98,000 Land 70,000 Buildings 162,000 Accumulated Depreciation. Buildings S Accrued Wages Payable Accrued Taxes Payable Net Assets--Expendable Net Assets--Nonexpendable Totals $ 330,000 $ 65,000 150 1.800 15,000 248,050 330,000 The endowment was in the form ofan apartment building. Endowmentprincipal is to be kept intact, and the net earings 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. CITY OF MAHOGANY CAMPING BUILDS CHARACTER TRUST FUND TRANSACTIONS FOR THE CURRENT FISCAL YEAR (a) Expenses and accrued liabilities paid in cash were as follows. S Heat, light, and power Janitor's wages (including $150 previously accrued) Painting and decorating Repairs Taxes (including $1.800 previously accrued) Management fees Miscellaneous expenses 5,200 3,000 3.750 1,500 3,750 4.500 1,500 (b) A land improvement of $2.000 was constructed by an outside contractor who was paid in full. No depreciation will be recorded on this improvement until next year. (c) Apartment rents for 20X6, all collected amounted to $45,000 (d) Camping scholarships of $13,500 were paid to finance 20x6 summer camp fees. (e) The following adjustments were made at the close ofthe year (1) Depreciation on building, $6,000. (2) Accrued taxes, $1,900. (3) Accrued wages, $170. (f) The revenue and expense accounts were closed at the end of the year to the appropriate account(s). REQUIRED: (1) Prepare general journal entries, in proper form, to record the above transactions for this private purpose trust fund. Use the letter of the transaction for the date. Omit explanations. Prepare a statement ofnet assets, in proper form, as of December 31, 20X6. (2)