At December 31,2014,an Enterprise Fund has the following adjusted accounts outstanding: $\begin{array}{ll}
\text { Insurance Expense } & \$ 2,000 \
\text { Depreciation Expense } & 3,000 \
\text { Supplies Expense } & 10,000 \
\text { Salaries Expense } & 100,000 \
\text { Service Revenues } & 123,000
\end{array}$ When preparing the closing entry for the temporary accounts at December 31,2014,the Enterprise Fund's accountant will

Question

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To determine the correct entry, calculate the difference between the total expenses and the service revenues. The total expenses are $2,000 + $3,000 + $10,000 + $100,000 = $115,000. The service revenues are $123,000. The difference, which represents the net increase in net position, is $123,000 - $115,000 = $8,000. In an Enterprise Fund, the closing entry to reflect the net increase in net position due to operations would be to credit Net Position, Unrestricted.

At December 31,2014,an Enterprise Fund Has the Following Adjusted Accounts