9-23. Net Position Classification. (LO9-4) Section A provides a list of transactions or events that occurred during the year, followed by Section B, a list of the possible effects each transaction or event has on adjusting net position accounts at year- assuming that all temporary accounts have already been closed to the account Net Position-Unrestricted. Section A 1. Depreciation was recorded for the year. 2. 3. 4. 5. 6. 7. 8. 9. 10. Section B A fully depreciated computer was sold for $50. Bonds issued to construct the new library were retired. Construction expenditures were incurred for the new fire substation. The beginning balance in inventory of supplies had decreased by $1,083 when measured at fiscal year-end. In accordance with the bond issue terms, resources were contributed to the debt service fund for future retirement term bonds. A $3 million endowment was received during the year. Several new fire trucks were purchased and 70 percent financed with long-term notes. The capital projects fund transferred its residual fund balance to the debt service fund during the year. A grant received in the prior year for after-school recreational activities was expended at year-end. a. Restricted Net Position is increased and Unrestricted Net Position is decreased. b. Restricted Net Position is decreased and Unrestricted Net Position is increased. c. Net Investment in Capital Assets is increased and Unrestricted Net Position is decreased. d. Net Investment in Capital Assets is decreased and Unrestricted Net Position is increased. e. None of the above. Required Identify how the net position categories would need to be adjusted for each of the transactions. For the statement in Section A select the appropriate answer from Section R Page
9-23. Net Position Classification. (LO9-4) Section A provides a list of transactions or events that occurred during the year, followed by Section B, a list of the possible effects each transaction or event has on adjusting net position accounts at year- assuming that all temporary accounts have already been closed to the account Net Position-Unrestricted. Section A 1. Depreciation was recorded for the year. 2. 3. 4. 5. 6. 7. 8. 9. 10. Section B A fully depreciated computer was sold for $50. Bonds issued to construct the new library were retired. Construction expenditures were incurred for the new fire substation. The beginning balance in inventory of supplies had decreased by $1,083 when measured at fiscal year-end. In accordance with the bond issue terms, resources were contributed to the debt service fund for future retirement term bonds. A $3 million endowment was received during the year. Several new fire trucks were purchased and 70 percent financed with long-term notes. The capital projects fund transferred its residual fund balance to the debt service fund during the year. A grant received in the prior year for after-school recreational activities was expended at year-end. a. Restricted Net Position is increased and Unrestricted Net Position is decreased. b. Restricted Net Position is decreased and Unrestricted Net Position is increased. c. Net Investment in Capital Assets is increased and Unrestricted Net Position is decreased. d. Net Investment in Capital Assets is decreased and Unrestricted Net Position is increased. e. None of the above. Required Identify how the net position categories would need to be adjusted for each of the transactions. For the statement in Section A select the appropriate answer from Section R Page
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:9-23.
Net Position Classification. (LO9-4) Section A provides a list of transactions or events that occurred during the year,
followed by Section B, a list of the possible effects each transaction or event has on adjusting net position accounts at year-end,
assuming that all temporary accounts have already been closed to the account Net Position-Unrestricted.
Section A
1. Depreciation was recorded for the year.
A fully depreciated computer was sold for $50.
Bonds issued to construct the new library were retired.
4. Construction expenditures were incurred for the new fire substation.
The beginning balance in inventory of supplies had decreased by $1,083 when measured at fiscal year-end.
In accordance with the bond issue terms, resources were contributed to the debt service fund for future retirement of
term bonds.
A $3 million endowment was received during the year.
Several new fire trucks were purchased and 70 percent financed with long-term notes.
The capital projects fund transferred its residual fund balance to the debt service fund during the year.
A grant received in the prior year for after-school recreational activities was expended at year-end.
2.
3.
5.
6.
7.
8.
9.
10.
Section B
a. Restricted Net Position is increased and Unrestricted Net Position is decreased.
b. Restricted Net Position is decreased and Unrestricted Net Position is increased.
c. Net Investment in Capital Assets is increased and Unrestricted Net Position is decreased.
d. Net Investment in Capital Assets is decreased and Unrestricted Net Position is increased.
e. None of the above.
Required
Identify how the net position categories would need to be adjusted for each of the transactions. For the statement in
Section A, select the appropriate answer from Section B.
Page 420
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education