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:

1.	The beginning net position balances are: net investment in capital assets, $680,600; restricted, $0; and unrestricted, $1,356,286.
2.	Net income for the year was $162,951.
3.	Depreciation expense totaled $54,064.
4.	A piece of equipment with a carrying value of $26,700 was sold for $25,600.
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 complete, and construction work in progress totaled $248,318.
6.	A $15,018 principal payment was made on a capital lease.
7.	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.

Required

Prepare the net position section of Falmouth’s 2017 statement of net position.

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:

1.	The beginning net position balances are: net investment in capital assets, $680,600; restricted, $0; and unrestricted, $1,356,286.
2.	Net income for the year was $162,951.
3.	Depreciation expense totaled $54,064.
4.	A piece of equipment with a carrying value of $26,700 was sold for $25,600.
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 complete, and construction work in progress totaled $248,318.
6.	A $15,018 principal payment was made on a capital lease.
7.	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.

Required

Prepare the net position section of Falmouth’s 2017 statement of net position.

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:

1.	The beginning net position balances are: net investment in capital assets, $680,600; restricted, $0; and unrestricted, $1,356,286.
2.	Net income for the year was $162,951.
3.	Depreciation expense totaled $54,064.
4.	A piece of equipment with a carrying value of $26,700 was sold for $25,600.
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 complete, and construction work in progress totaled $248,318.
6.	A $15,018 principal payment was made on a capital lease.
7.	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.

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 As of December 31, 2017 Net Position: Net Position—Net Investment In Capital Assets Net Position—Restricted Net Position—Unrestricted Total Net Position

Answer 1

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