Section A provides a list of transactions or events that occurred during the year, followed by Section B, a list of possible effects each transaction or even has on adjusting net positoin accounts at year end, assuming that all temporary accounts have already been closed to the account Net Positoin - Unrestricted.

Section A

____1. Depreciation was recorded for the year.

____2. A fully depreciated computer was sold for $50.

___3. bonds issued to construct the new library were retired.

___4. construction expenditures were incurred for the new fire substation.

___5. grant funds that can only be used for a summer kids' camp remian unexpended at year end.

__6. an operating lease was entered into during the year.

____7. a $3 million endowment was received during the year.

___8. several new fire trucks were purchased and 70 percent financed with long term notes

_____9. the capital projects fund transferred is residual fund balance to the debt service fund during the year

____10. a grant received in the prior year for afterschool recreational activities was expended.

Section B

A. restriced net positon is increased and unrestricted net position is decreased

B. restricted net position is decreased and unrestricted net position is increased.

C. net investment in cpaital assets is increased and unrestricted net positioni is decreased

D. Net investment in capital assets is decreased and unrestricted net position is increased.

E. None of the above.

Requried: Identify how the net positon categories would need to be adjusted for each of the transactions. For the statement in section A select the appropriate answer from section B