The City of Lexington is preparing its government-wide financial statements from its fund financial statements.

The City records Deferred Revenue with a book value of $3,500 and Compensated Absences of $2,000 (all numbers in $1,000s) at the beginning of the year. During the year, these accounts increased by $1,500 and $900, respectively. What reconciliation entries must the City include in its government-wide financial statements relating to Deferred Revenues and Compensated Absences?

Transcribed Image Text:

Revenues Reconciliation Spreadsheet Description To record reconciliation entry for deferred revenue. Compensated absence expense To record reconciliation entry for compensated absences. Debit 0 0 0 0 0 0 Credit 0 0 0 0 0 0 Revenues Reconciliation Spreadsheet Description To record reconciliation entry for deferred revenue. Compensated absence expense To record reconciliation entry for compensated absences. Debit 0 0 0 0 0 0 Credit 0 0 0 0 0 0

Answer rating: 100% (QA)

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