Answered

Explore Westonci.ca, the premier Q&A site that helps you find precise answers to your questions, no matter the topic. Experience the ease of finding reliable answers to your questions from a vast community of knowledgeable experts. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

The village of Shelburne operates a nine-hole golf course as an enterprise fund. You are provided with the following information for the current year:
1. Net income for the year was $161,511.
2. The beginning net position balances are net investment in capital assets $585,400; restricted $5,000; and unrestricted $254,790.
3. New golf carts were leased. The present value of the lease liability is $200,000. A principal payment of $40,000 was made during the year and amortization of the leased asset totaled $37,500.
4. Lawn edging equipment with a carrying value of $6,100 was sold for $6,300.
5. A new lawn mower was purchased for $75,000. At the end of the year, a $25,000 note associated with the machine remains outstanding. Depreciation of the mower was $7,500.
6. Additional depreciation of other assets totaled $30,000.
Required: Prepare the net position section of Shelburne’s statement of net position.
Net Position:Net Position - Net investment in capital assets:Net Position - Restricted:Net Position - Unestricted:Total Net Position:

Sagot :

abiolataiwo2015

Answer:

$1,006,701

Explanation:

Preparation of the net position section of Shelburne’s of net position

First step is to calculate the ending balance

Net investment in capital assets:

Beginning balance$585,400

Add Leased equipment $200,000

Less Lease obligation $160,000

($200,000 − $40,000)

Less Sale of equipment $6,100

Add New equipment (lawnmower) $75,000

Less Note related to lawnmower $25,000 Less Depreciation and amortization $75,000

Ending balance$594,300

Now let Prepare the net position section of Shelburne’s of net position

VILLAGE OF SHELBURNE Golf Course Enterprise Fund

Partial Statement of Net Position As of year End

Net Position:

Net Position—Net Investment In Capital Assets $594,300

Add Net Position—Restricted$5,000

Add Net Position—Unrestricted$407,401

Total Net Position $1,006,701

($594,300+$5,000+$407,401)

Therefore the net position section of Shelburne’of net position will be $1,006,701

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.