accounting

Private purpose trust funds

The endowment was in the form of an apartment building.Endowment principal is to kept intact, and the net earnings are to be used in financing scholarships to non for profit organizations camps designed to help instill positive character qualities in participants.

The following transactions were made during the year

1.Land improvement of $2000 was constructed by an outside contractor who was paid in full.

2.Apartment rents FOR 20X6(ALL COLLECTED) amounted to $45,000

3.camping scholarships of $13,500 were paid to finance 20x6 summer camp fees.

4.The following adjustments were made at the close of the year:

depreciation $6000

accrued taxes $1,900

accrued wages $170

PREPARE GENERAL JOURNAL ENTRIES TO RECORD THESE TRANSACTIONS IN THE TRUST FUND.