ACCOUNTING FOR GOVERNMENTAL AND NONPROFIT ORGANIZATIONS QUIZ 5 Score Name Sectio
ID: 2548172 • Letter: A
Question
ACCOUNTING FOR GOVERNMENTAL AND NONPROFIT ORGANIZATIONS QUIZ 5 Score Name Section Problem (10 points). The following transactions are typical of those found in proprietary funds. PROPRIETARY FUNDS TYPICAL TRANSACTIONS RECORDED IN FUNDS 1) Sold building with a book value of $150,000 for $225,000. The proceeds from the sale ( 2) | Land costing $500,000 was purchased by issuing a five year, 8% note payable for 3) Depreciation expense for the year was $200,000. are not restricted in any way. S450,000. The balance was paid from cash restricted for an expansion project. (4) Interest expense of $36,000 on the note in transaction (2) above was paid from unrestricted (5) Bonds payable of $200,000 were repaid, along with $50,000 of interest. The bonds were 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) above was expended for its 8) Sales revenue amounted to $1,000,000. resources. issued several years earlier to finance capital asset construction. intended purpose. 9) Interest revenues restricted to the use of the fund, $40,000, were received. (10) The cost of materials and supplies used for the year was $75,000 REQUIRED: Using the attached sheet, indicate the impact that each of the above transactions has on the total net position, on each net position component, and if it affects the statement of revenues, expenses, and changes in net position of a proprietary fundExplanation / Answer
PROPRIETORY FUNDS
TYPICAL TRANSACTION RECORDED IN FUNDS
DOLLAR EFFECT ON NET POSITION
Transaction Number
Any Effect on Operating Statement
Unrestricted
Restricted
Net Investment in Capital Assets
Total
1
75000
75000
0
75000
75000
2
-36000
-486000
0
450000
72000
3
-200000
-200000
0
0
0
4
-36000
36000
0
0
0
5
-50000
-200000
0
250000
0
6
0
500000
0
500000
0
7
0
-300000
0
300000
0
8
1000000
0
0
1000000
0
9
40000
0
0
40000
0
10
-75000
0
0
-75000
0
PROPRIETORY FUNDS
TYPICAL TRANSACTION RECORDED IN FUNDS
DOLLAR EFFECT ON NET POSITION
Transaction Number
Any Effect on Operating Statement
Unrestricted
Restricted
Net Investment in Capital Assets
Total
1
75000
75000
0
75000
75000
2
-36000
-486000
0
450000
72000
3
-200000
-200000
0
0
0
4
-36000
36000
0
0
0
5
-50000
-200000
0
250000
0
6
0
500000
0
500000
0
7
0
-300000
0
300000
0
8
1000000
0
0
1000000
0
9
40000
0
0
40000
0
10
-75000
0
0
-75000
0
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.