Using the format at the end of this exercise, indicate the impact that each of the following transactions has on the total net position of a proprietary fund and on each net position component. Also, indicate whether the transaction is reported in the statement of revenues, expenses, and changes in fund net position of a proprietary fund. A sample transaction is analyzed for you.Sample Transaction: Purchase of equipment costing $5,000 with unrestricted cash.1. Sold building with a book value of $150,000 for $225,000 (proceeds not restricted).2. Land costing $500,000 was purchased by issuing a five-year, 8% note payable for $450,000. The balance was paid from cash restricted for an expansion project.3. Depreciation expense for the year was $200,000.4. Interest expense of $36,000 on the note in transaction 2 was paid from unrestricted resources.5. Bonds payable of $200,000 were repaid from restricted resources, along with $50,000 of interest. The bonds were issued several years earlier to finance capital asset construction.6. A capital grant of $500,000 was received, but no qualifying costs have been incurred.7. $300,000 of the restricted capital grant from transaction 6 was expended for its intended purpose.8. Sales revenues amounted to $1,000,000.9. Interest revenues restricted to the use of the Enterprise Fund, $40,000, were received.10. The cost of materials and supplies used for the year was$75,000.
Using the format at the end of this exercise indicate