The governmental funds balance sheet conversion worksheet for December 31, 20X3, for the Town of Red Springs is provided here.

Required

a. Complete the Town of Red Springs Balance Sheet Conversion Worksheet. (Numbers are omitted intentionally from the Governmental Funds column. The fund balance number is correct.)

b. Will amortization of the deferred interest expense adjustment increase or decrease the amount of interest expense reported in the Town of Red Springs government-wide Statement of Activities?

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Assets Cash. **** Investments Accrued interest receivable Accounts receivable, net Taxes receivable, net Notes receivable, net Due from other funds Due from other governments Inventories Prepaid items Town of Red Springs Governmental Funds Balance Sheet Conversion Worksheet December 31, 20X3 Liabilities and FUND BALANCES Liabilities: Warrants payable. Accounts payable Due to other funds Deposits from others. Salaries and benefits payable Deferred revenue Governmental Funds $ 224,460 75,000,000 5,000,000 3,782,000 2,594,000 5,563,000 40,000,000 1,330,000 714,000 12,822,000 27,365,500 7,000,000 250,000 6,400,000 31,640,000 GCA Balances GLTL Balances Other Balances and Interfund Items D (4,000,000) Governmental Activities $ 224,460 75,000,000 5,000,000 3,782,000 2,594,000 B 40,000,000 1,330,000 714,000 12,822,000 27,365,500 E 250,000 6,400,000 F