Matching. Section A provides a list of transactions or events that occurred during the year, followed by Section B. a list of the possible effects each transaction or event has on adjusting net asset accounts at year-end, assuming that all temporary accounts have already been closed to the account Net Assets— Unrestricted.
Section A
––1. Depreciation was recorded for the year.
––2. A fully depreciated computer was sold for S50.
––3. Bonds issued to construct the new library were retired.
––4. Construction expenditures were incurred for the new fire substation.
––5. Cash was set aside for future debt retirement.
Section B
a. Restricted Net Assets is increased and Unrestricted Net Assets is decreased.
b. Restricted Net Assets is decreased and Unrestricted Net Assets is increased.
c. Invested in Capital Assets, Net of Related Debt is increased and Unrestricted Net Assets is decreased.
d. Invested in Capital Assets, Net of Related Debt is decreased and Unrestricted Net Assets is increased.
e. None of the above.
Required
Identify how the net asset categories would need to be adjusted for each of the transactions. For the statement in Section A, select the appropriate answer from Section B.