During the current year, the Town of Mashpee had a number of transactions that affected net position of its town golf course, which is operated as an enterprise fund. You are provided with the following information: 1. The beginning net position balances are net investment in capital assets, $1,709,800; restricted for renovation of the check-in stand, $50,000; and unrestricted, $354,692. 2. Net income for the year was $207,190. 3. Depreciation expense totaled $69,500. 4. A piece of equipment with a carrying value of $25,000 was sold for $22,500. 5. Bonds for $500,000 were issued to construct a new pro shop. At the end of the year, the shop was partially complete, and construction work in progress totaled $302,000. 6. A $12,000 principal payment was made on a lease obligation. 7. A new golf ball retrieving machine was purchased for $125,000. At the end of the year, a $40,000 note associated with the machine remains outstanding. 8. The check-in stand was completed for $52,000 of construction costs incurred this year. Required Prepare the net position section of Mashpee's statement of net position. Answer is complete but not entirely correct. TOWN OF MASHPEE Golf Enterprise Fund Partial Statement of Net Position As of year End Net Position: Net Position-Net Investment In Capital Assets Net Position-Restricted Net Position-Unrestricted $ 1,764,300✓ 198,000✔ 259,382
During the current year, the Town of Mashpee had a number of transactions that affected net position of its town golf course, which is operated as an enterprise fund. You are provided with the following information: 1. The beginning net position balances are net investment in capital assets, $1,709,800; restricted for renovation of the check-in stand, $50,000; and unrestricted, $354,692. 2. Net income for the year was $207,190. 3. Depreciation expense totaled $69,500. 4. A piece of equipment with a carrying value of $25,000 was sold for $22,500. 5. Bonds for $500,000 were issued to construct a new pro shop. At the end of the year, the shop was partially complete, and construction work in progress totaled $302,000. 6. A $12,000 principal payment was made on a lease obligation. 7. A new golf ball retrieving machine was purchased for $125,000. At the end of the year, a $40,000 note associated with the machine remains outstanding. 8. The check-in stand was completed for $52,000 of construction costs incurred this year. Required Prepare the net position section of Mashpee's statement of net position. Answer is complete but not entirely correct. TOWN OF MASHPEE Golf Enterprise Fund Partial Statement of Net Position As of year End Net Position: Net Position-Net Investment In Capital Assets Net Position-Restricted Net Position-Unrestricted $ 1,764,300✓ 198,000✔ 259,382
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Nn.36.
Subject :- Accounting
Transcribed Image Text:During the current year, the Town of Mashpee had a number of transactions that affected net position of its town golf course, which is
operated as an enterprise fund. You are provided with the following information:
1. The beginning net position balances are net investment in capital assets, $1,709,800; restricted for renovation of the check-in
stand, $50,000; and unrestricted, $354,692.
2. Net income for the year was $207,190.
3. Depreciation expense totaled $69,500.
4. A piece of equipment with a carrying value of $25,000 was sold for $22,500.
5. Bonds for $500,000 were issued to construct a new pro shop. At the end of the year, the shop was partially complete, and
construction work in progress totaled $302,000.
6. A $12,000 principal payment was made on a lease obligation.
7. A new golf ball retrieving machine was purchased for $125,000. At the end of the year, a $40,000 note associated with the
machine remains outstanding.
8. The check-in stand was completed for $52,000 of construction costs incurred this year.
Required
Prepare the net position section of Mashpee's statement of net position.
Answer is complete but not entirely correct.
TOWN OF MASHPEE
Golf Enterprise Fund
Partial Statement of Net Position
As of year End
Net Position:
Net Position-Net Investment In Capital Assets
Net Position-Restricted
Net Position-Unrestricted
$ 1,764,300
198,000✔
259,382
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