Question: Using the format at the end of this exercise indicate

Using the format at the end of this exercise, indicate the impact that each of the following transactions has on the total net position of a proprietary fund and on each net position component. Also, indicate whether the transaction is reported in the statement of revenues, expenses, and changes in fund net position of a proprietary fund. A sample transaction is analyzed for you.
Sample Transaction: Purchase of equipment costing $5,000 with unrestricted cash.
1. Sold building with a book value of $150,000 for $225,000 (proceeds not restricted).
2. Land costing $500,000 was purchased by issuing a five-year, 8% note payable for $450,000.
The balance was paid from cash restricted for an expansion project.
3. Depreciation expense for the year was $200,000.
4. Interest expense of $36,000 on the note in transaction 2 was paid from unrestricted resources.
5. Bonds payable of $200,000 were repaid from restricted resources, along with $50,000 of interest. The bonds were issued several years earlier to finance capital asset construction.
6. A capital grant of $500,000 was received, but no qualifying costs have been incurred.
7. $300,000 of the restricted capital grant from transaction 6 was expended for its intended purpose.
8. Sales revenues amounted to $1,000,000.
9. Interest revenues restricted to the use of the Enterprise Fund, $40,000, were received.
10. The cost of materials and supplies used for the year was$75,000.

  • CreatedOctober 25, 2014
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