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the town of papillion has assigned you to examine its june 30 20×1 balance sheet you 4245393

The town of Papillion has assigned you to examine its June 30, 20X1, balance sheet. You are the first CPA to be engaged by the town, and you find that acceptable methods of municipal accounting have not been employed. The town clerk stated that the books had not been closed and presented the following preclosing trial balance of the general fund as of June 30, 20X1:Additional Information1. The estimated losses of $18,000 for current year taxes receivable were determined to be a reasonable estimate. The delinquent taxes allowance account should be adjusted to $8,000, the amount of the remaining delinquent taxes.2. Included in the Revenue account is a credit of $27,000, representing the value of land donated by the state as a grant-in-aid for construction of a municipal park.3. Operating supplies ordered in the prior fiscal year and chargeable to that year had beenreceived, recorded, and consumed in July 20X0. The outstanding purchase orders for these supplies, which had not been recorded in the accounts on June 30, 20X0, amounted to $8,800. The vendors’ invoices for these supplies totaled $9,400. Appropriations lapse one year after the endof the fiscal year for which they are made.4. Outstanding purchase orders for operating supplies totaled $2,100 on June 30, 20X1. These purchase orders had not been recorded on the books.5. The special assessment bonds were sold in June 20X1 to finance a street-paving project. No contracts have been signed for this project, and no expenditures have been made from thec apital projects fund. The city is obligated for the bonds if the property owners default.6. The balance in the Revenue account includes credits for $20,000 for a note issued to a bank to obtain cash in anticipation of tax collections and for $1,000 for the sale of scrap iron from the town’s water plant. The note was still outstanding on June 30, 20X1. The operations of the water plant are accounted for in the water fund.7. The Expenditures—Building Addition Constructed account balance is the cost of an addition to the town hall building constructed and completed in June 20X1. The general fund recorded the payment as authorized.8. The Expenditures—Serial Bonds Paid account reflects the annual retirement of general obligation bonds issued to finance the construction of the town hall. Interest payments of $7,000 for the bond issue are included in other expenditures.Requireda. Prepare the formal adjusting and closing journal entries for the general fund for the fiscal year ended June 30, 20X1.b. The preceding information disclosed by your examination was recorded only in the general fund even though other funds were involved. Prepare the formal adjusting journal entries for any other funds involved.View Solution:
The town of Papillion has assigned you to examine its

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