30.00 points During 2017, the Town of Falmouth had a numbor of transactions that

ID: 2569732 • Letter: 3

Question

30.00 points During 2017, the Town of Falmouth had a numbor 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 1. The net position balances are: net investment in capital assets, $679,300; restricted, $0; and unrestricted, $1,353,696 2. Net income for the year was $162,640 3. Depreciation expense totaled $53,981. 4. A pioce of equipment with a carying value of $25,800 was sold for $24,700. 5. 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 complele, and construction work in progress totaled $247,861. 6. A$14,991 principal payment was made on a capital lease. 7. A new Zamboni ice resurfacing machine was purchased for $220,000. At the end of the year, a $29,700 note associated with the machine remains outstanding Required Prepare the net position section of Falmouth's 2017 statement of net position. TOWN OF FALMOUTH Skating Rink Enterprise Fund Partial Statement of Net Position r 31, 2017 Net Position: Net Position-Net Investment In Capital Assets Net Position-Unrestricted Total Net Position References eBook & Resources

Explanation / Answer

Town of Falmouth

Skating Rink Enterprise Fund

Partial Statement of Net Position

as of December 31, 2017

Net Position:

Net Position - Net Investment in Capital Assets

$834,530

Net Position - Restricted

$252,139

Net Position - Unrestricted

$1,108,967

Total Net Position

$2,195,636

Beginning Balance $679,300

Less: Depreciation $53,961

Less: Sale of equipment $25,800 ($79,761)

Add: Capital lease payment $14,991

Add: New Equipment (Zamboni) $220,000

Ending Balance $834,530

Beginning balance 0

Add: Restricted for construction ($500,000 - $247,861) $252,139

Ending balance $252,139

Beginning balance $1,353,696

Add: Net Income $162,640

Less: Increase in net investments in capital assets ($155,230)

Less: Increase in Restricted ($252,139)

Ending Balance $1,108,967

= $834,530 - $679,300 = $155,230