Exercise 18-17

The following information was available about items that differed between the governmental funds and the government-wide statements. Assume that there are no internal service funds. The schedule of capital assets prepared for the year ended December 31, 2015, included the following items:

Beginning Ending

Government Activities Balance Additions Retirements Balance

Total Capital Assets

(at gross) $800,000 $60,000 $(30,000) $830,000

Less: Accumulated

Depreciation (200,000) (40,000) 22,500 (217,500)

Net Capital Assets $600,000 $20,000 $ (7,500) $612,500

The bond was issued at the beginning of the year and the following amortization schedule is available:

Interest Cash Premium

Date Expense Paid Amortization Balance

1/1/2015 $104,213

12/31/2015 $6,253 $7,000 $747 $103,466

The total fund balances for governmental activities was $3,125,000 at the end of the year.

Required:

Prepare the reconciliation of the governmental fund balances to the net position reported for governmental activities on the Statement of Net Position as of December 31, 2015.