E$10-2($Net Position Components$)$ 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.

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$1.$ Sold building with a book value of $$150,000$ for $$225,000($proceeds not restricted$).$

$2.$ Land costing $$500,000$ was purchased by issuing a $5-$year, $8\%$ note payable for $$450,000.$ The balance $($$$50,000)$ 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.$

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Net Position

Transaction Number

Effect on Operating Statement?

Net Investment in Capital Assets

Restricted

Unrestricted

Total

Sample

None

$+$$$5,000$

$-$

$($$$5,000)$

$-$