The following is a trial balance of the Camping Builds Character Trust Fund of the City of Slusher’s Ridge as of January 1, 20X6:

The endowment was in the form of an apartment building. Endowment principal is to be kept intact, and the net earnings 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:
1. Expenses and accrued liabilities paid in cash were as follows:
Heat, light, and power . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,200
Janitor’s wages (including $150 previously accrued) . . .3,000
Painting and decorating . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,750
Repairs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,500
Taxes (including $1,800 previously accrued). . . . . . . . . .3,750
Management fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4,500
Miscellaneous expenses . . . . . . . . . . . . . . . . . . . . . . . . . . .1,500
  $ 23,200
2. A land improvement of $2,000 was constructed by an outside contractor who was paid in full.
3. Apartment rents for 20X6 (all collected) amounted to $45,000.
4. Camping scholarships of $13,500 were paid to finance 20X6 summer camp fees.
5. The following adjustments were made at the close of the year:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 6,000
Accrued Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,900
Accrued Wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170

Required
a. Prepare general journal entries to record these transactions in the Trust Fund.
b. Prepare a Statement of Net Position as of December 31, 20X6, and a Statement of Changes in Net Position for the fiscal year ended December 31,20X6.

Transcribed Image Text:

Cash. Land.. . . ....98,000 70,000 162,000 $65,000 150 1,800 Accrued Taxes Payable.. Net Position-Restricted for Camp 15,000 Net Position-Restricted for Endowment- 248,050 $330,000 $330,000