On January 1, 2025, a new Board of Directors was elected for Cullumber Hospital. The new board switched to a different accountant. After reviewing the hospital's books, the accountant decided that the accounts should be adjusted. Effective January 1, 2025, the board decided that 1. 2. Separate funds should be established for the General Fund, the Cullumber Endowment Fund, and the Plant Replacement and Expansion Fund (the old balances will be reversed to eliminate them). The accounts should be maintained in accordance with fund accounting principles. The balances in the general ledger at January 1, 2025, are presented here: Cash $49,000 Investment in U.S. treasury bills 98,000 Investment in common stock 441,000 Interest receivable 5,000 Accounts receivable 44,000 Inventory Land 28,000 369,000 Building 257,000 Equipment 271,000 Allowance for depreciation $ 381,000 Accounts payable 65,000 Bank loan 147,000 Endowment fund balance Other fund balances 117,000 852,000 Total $1,562,000 $1,562,000 The following additional information is available: 1. 2. Under the terms of the will of J. Ethington, founder of the hospital, "The principal of the bequest is to be fully invested in trust forevermore in mortgages secured by productive real estate in Central City and/or in U.S. Government securities... and the income therefrom is to be used to defray current expenses." The Endowment Fund consists of the following: Cash received in 1912 by bequest from Ethington $76,000 Net gains realized from 1956 through 1989 from the sale of real estate acquired in mortgage foreclosures 22,000 Income received from 1990 through 2024 from 90-day U.S. treasury bill investments Balance per general ledger on January 1, 2025 3. The land account balance is composed of 19,000 $117,000 A 1912 appraisal of land at $11,000 and building at $6,000, received by donation at that time. The building was demolished in 1934 Appraisal increase based on insured value in land title policies issued in 1954 Landscaping costs for trees planted Balance per general ledger on January 1, 2025 $ 17,000 340,000 12,000 $369,000 4. The building balance is composed of Cost of present hospital building completed in January 1985, when the hospital commenced operations $311,000 Adjustment to record appraised value of building in 1994 (95,000) Cost of elevator installed in hospital building in January 2010 41,000 Balance per general ledger on January 1, 2025 $257,000 The estimated useful lives of the hospital building and the elevator when new were 50 years (9 years remaining) and 20 years (5 years remaining), respectively. 5. The hospital's equipment was inventoried on January 1, 2025. The costs shown in the inventory agreed with the equipment account balance in the general ledger. The allowance for depreciation account at January 1, 2025, included $154,000 applicable to equipment, and that amount was determined to be accurate. All depreciation is computed on a straight-line basis. 6. A bank loan was obtained to finance the cost of new operating room equipment purchased in 2021. Interest was paid to December 31, 2024. 7. Common stock with a market value of $441,000 was donated to Cullumber Hospital with the stipulation that the proceeds from the sale of the stock must be used for facilities expansion. The hospital plans to undertake expansion of its facilities next year and to sell these securities at that time. Using the workpaper form below, prepare the entries necessary to establish the correct balances as of January 1, 2025. iption $ Trial Balance Debit Credit $ $ Debit Adjustments $ Credit $ General Fund Debit Credit $ Endowment Fund Debit Credit $ $ $ Plant Replacement Fund Debit Cre $ Totals List of Accounts. $ $ $ $