Packer City€™s balance sheet and statement of revenues, expenditures, and changes in fund balances are shown below for the governmental funds. Information on capital assets and long-term obligations are also provided from the notes to the financial statements.
Additional information:
a. Receivables include two items that were not available for current-period expenditures. These are $1,402,903 Advance to Water Utility and special assessments of $66,008.
b. Accrued interest payable was $114,765 on December 31, 2013, and it was $133,627 on December 31, 2014.
c. Funding of principal payments included in the tax levied, but to be used for future principal payments is $189,417.
d. Governmental activities deferred debits include unamortized debt expense of $104,357 (net of accumulated amortization of $12,777).
e. Special assessments receivable decreased $44,394.
f. Issue costs on the new debt issued were $6,389. They are expensed, but are capitalized in the statement of activities.
g. Of the non-capitalized capital outlays, $920,000 are for police equipment and the balance, $1,115,616, is attributed to highway maintenance.
h. Depreciation expense is charged to the functions as follows:
a. Highway $563,326
b. Education and recreation 203,276
c. Unallocated depreciation 525,086
i. There is very limited information upon which to allocate revenues, fees, and grants against expenditures. Do your best and just try to reflect the spirit of the process.
Required
1. Prepare a reconciliation schedule for balance sheet to statement of net assets.
2. Prepare reconciliation for statement of revenues, expenditures, and changes in fund balances to the statement of activities.
3. Based on part (1), prepare the statement of net assets.
4. Based on part (2), prepare the statement of activities.

D. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2014 was as follows:

G. LONG-TERM OBLIGATIONS
Long-term obligations activity for the year ended December 31, 2014 was as follows:
ANSWER CONTINUE TO NEXT PAGE

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Balance Shee Governmental Funds December 31, 2014 Nonmajor Governmenta Governmental Debt Service Capital Budget enera ASSETS Cash and cash equivalents . . . . . . .$3,871,433 766,926 $3,521,364 $8,285,896 $16,445,619 Receivable (net) 604,403 36,580 10,751,122 73,059 Due from other governments .. . . .. 9,799 laxes receivable. . 8,588,671 1,982,360 Special assessments receivable 42,790 90,432 1,900 8,689 42,790 90,432 1,900 8,689 Due from other funds . . . . .. . . . Advance to Water Utili 1,204,773 1,204,77.3 LIABILITIES AND FUND BALANCES Liabilities: $ 409,125 $ 142,235 $ 297,799 $336,620 1,043,544 142,235 1,900 320,000 12,414,380 ccounts payable Due to other funds.... 320,000 331,392 8,697,725 3,385,263 Fund balances: eserved for. $ 8,689 8,689 228,359 142,443 2,899,974 228,359 382,168 3,666,901 Kevolving loan purposes . 160,000 79,725 766,927 nreserved, rep General fund 3,152,759 3,152,75'9 4,233,295 3,698,591 $3,321,448 766,927 $3,223,565 $8,150,440 $15,462,380 4,233,295 554,751 3,143,840 Total fund balances .. . Total liabilites and fund balances $12,570,533 $4,152,190 $3,521,364 $9,140,352 Amounts reported for governmental activities in the statement of net assets are different because Capital assets used in governmental funds are not financial resources and therefore are not reported in the funds Special assessments Advance to Water Utili Some liabilities, including long-term debt, are not due and payable in the current period and therefore are not 26,870,578 66,008 1,402,904 (28,044,186) 15,757,684 reported in NET ASSETS OF GOVERNMENTAL ACTIVITIES Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2014 onmajor Governmenta Governmental General Debt Service Capital Budget REVENUES $10,465 $10,144,032 1,944,20.4 1,530,215 413,989 639 54,270 3,000,104 159,636 651,285 102,637 353,634 154,270 691,659 Fines, forfeitures, and penalties Public improvement revenues . . Commercial revenues .. . Intergovernmental charges for services 2,308,445 159,636 360,725 232,598 102,637 69,672 6,745 283,962 EXPENDITURES Current $143,768 2,762,030 Protection of persons and property Highway and transportation 4,945,330 423,885 295,846 1,423,885 863,46 86,788 130,257 86,788 1,899,146 1,768,889 Debt service: 1,157,514 1,057,619 57,496 6,192,690 Total expenditures. . . $11,429,649 $2,215,133 $4,062,923 $3,034,100 $20,741,805 1,057,619 57,496 4,005,427 513,980 673,283 Excess (deficiencyl of revenues $ 457.343 1257.69 $(4,011,706) $ 219,160 $ 3.592,900 OTHER FINANCING SOURCES (USES) $1,330,686 2,613,353 15,098) (2,413,299 (2,576,241) 29,520 (825,000) 3,025,000 Total other financing sources and 528,741 635,600 $2,184,904 (1,082,613 2,266,632 Proceeds from the sale of capital assets Debt refunded . .. 29,520 (825,000) 825,000 2,200,000 uses Net change in fund balances FUND BALANCES-BEGINNING $986,084 377,903 $1,826,802 $(863,453) (1,326,268) 2,335,364 FUND BALANCES-END OF YEAR.. 3,321,448 389,024 16,788,648 766,927 3,223,565 8,150,440 $15,462,380 5,050,367 9,013,893 Beginning Balance Ending Balance Additions Deletions Governmental Activities Capital assets not being depreciated 748,411 . ..2,991,833 $1,627,632 3,871,054 748,411 $ 4,619,465 Total capital assets not being depreciated Capital assets being depreciated . . . . $1,880,024 10,844,461 5,968,095 1,580,523 10,026,505 Total capital assets being depreciated. . . . . .$28,462,687 $2,529,442 $692,521 $30,299,608 1,099,517 2,552,241 3,137,932 983,631 275,174 Total capital assets being depreciated. . . . . . . ....$28,462,687 $2,529,442 $692,521 $30,299,608 $1,099,517 2,552,241 3,137,932 983,631 275,174 $ 7,372,819 $1,291,69 $616,015 $ 8,048,495 Capital assets being depreciated, net of depreciation $21,089,868 $1,237,7576,506 $22,251,13 6,128,085 1,694,087 7,916,030 2,149,459 281,634 98,349 441,624 211,913 38,984 Less accumulated depreciation for land improvements 1,059,680 $39,837 288,848 563,326 203,276 196,404 2,263,393 2,977,62:5 992,268 79,853 403,019 211,913 1,083 Less accumulated depreciation for land improvements 1,059,680 2,263,393 2,977,625 992,268 79,853 39,837 288,848 563,326 203,276 196,404 ildings . -. . 403,019 211,913 1,083 Machinery and equipment Amounts Due Within One Beginning Balance Ending Balance Increases Decreases ear Governmental Activities General obligation debt Community development Bonds and notes payable Lease revenue bonds 2,000,000 2,000,000 Total bonds and notes payable . . $24,360,692 $3,025,000 $1,982,514 $25,403, 178 $1,468,727 Other liabilities Accrued compensated absences-vacation and sick leave. .. 2,124,462 582,066 94,790 2,611,738 100,000 Total governmental activities Business-Type Activities Bonds and notes payable $ 755,000 $13,350,000 795,000 198,131 1,592,321 189,417 1,402,904 Total business-type activities $ 944,417 $14,752,904 $ 993,131