During 2017, the Town of Falmouth had a number of transactions that affected net
ID: 2556132 • Letter: D
Question
During 2017, the Town of Falmouth had a number of transactions that affected net position of its town skating rink, which is operated as an enterprise fund. You are provided with the following information for 2017:
The beginning net position balances are: net investment in capital assets, $680,600; restricted, $0; and unrestricted, $1,356,286.
Bonds for $500,000 were issued to construct a concession stand at the rink. At the end of the year, the concession stand was 50 percent complete, and construction work in progress totaled $248,318.
A new Zamboni ice resurfacing machine was purchased for $310,000. At the end of the year, a $30,600 note associated with the machine remains outstanding.
During 2017, the Town of Falmouth had a number of transactions that affected net position of its town skating rink, which is operated as an enterprise fund. You are provided with the following information for 2017:
The beginning net position balances are: net investment in capital assets, $680,600; restricted, $0; and unrestricted, $1,356,286.
Bonds for $500,000 were issued to construct a concession stand at the rink. At the end of the year, the concession stand was 50 percent complete, and construction work in progress totaled $248,318.
A new Zamboni ice resurfacing machine was purchased for $310,000. At the end of the year, a $30,600 note associated with the machine remains outstanding.
During 2017, the Town of Falmouth had a number of transactions that affected net position of its town skating rink, which is operated as an enterprise fund. You are provided with the following information for 2017:
The beginning net position balances are: net investment in capital assets, $680,600; restricted, $0; and unrestricted, $1,356,286.
Bonds for $500,000 were issued to construct a concession stand at the rink. At the end of the year, the concession stand was 50 percent complete, and construction work in progress totaled $248,318.
A new Zamboni ice resurfacing machine was purchased for $310,000. At the end of the year, a $30,600 note associated with the machine remains outstanding.
During 2017, the Town of Falmouth had a number of transactions that affected net position of its town skating rink, which is operated as an enterprise fund. You are provided with the following information for 2017:
Explanation / Answer
Computation of Net Investment in Capital Asset Particular Amount Opening Bal in Capital Asset $680,600 Less Depreciation -$54,064 Less sale of Equipment -$26,700 Add Capital Lease Payment $15,018 Add New Equipment $310,000 Less Outstanding Notes Associated with Machine -$30,600 Net Investment $894,254 Computation of Net Position ( Restricted) Particular Amount Opening Balance $0 Add Amount Restricted for Construction Total Amount Required for Const.-WIPConstr.) $251,682 Net Position(Restricted) $251,682 Computation of Net Position ( Un Restricted) Particular Amount Opening Balance $1,356,286 Add Net Income $162,951 Less Increase in Restricted Investment (Closing-Opening Net Position Restricted) $251,682 Less Increase in Net Investment in Capital Asset (Closing -Opening in Capital Investment) $213,654 Net Position ( Unrestricted) $1,053,901
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