Problem 3

Use the information provided to complete the steps in the box. This assignment includes two parts.

Part 1

Information about the conversion of the June 30, 2018, Governmental Funds Balance Sheet to the Statement of Net Position for the City of Avondale is presented below (all amounts are in thousands of dollars):

All governmental funds' fund balances............................................................... $14,000

Deferred revenues related to property taxes........................................................ 3,000

Accrued interest on long-term liabilities............................................................. 2,200

General capital assets......................................................................................... 11,000

Accumulated depreciation on general capital assets .......................................... 4,000

General long-term liabilities:

Bonds payable for capital assets.................................................................... 5,500

Compensated absences payable..................................................................... 3,000

Internal service fund serving governmental activities

Net position................................................................................................. 3,000

Capital assets, net of accumulated depreciation............................................ 1,500

Capital-related liabilities............................................................................... 600

1. Prepare the reconciliation of total fund balance to net position for governmental activities and for the City of Avondale, given the provided information in Part 1.