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 ABC 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

Part 2

Information about the December 30, 2018, year-end conversion of the Governmental Funds Change in Fund Balance to the Statement of Activities Change in Net Position for the City XYZ is presented below (all amounts are in thousands of dollars):

Net increase in all governmental funds' fund balances....................................... $1,400

Increase in deferred revenues (all related to property taxes)............................... 300

Increase in accrued interest on long-term liabilities............................................ 15

Expenditures - capital assets .............................................................................. 5,000

Expenditures - principal on capital-related debt................................................. 3,200

Depreciation expenses on capital assets ............................................................. 4,200

Proceeds from general long-term capital debt..................................................... 3,600

Proceeds from the sale of general capital assets (book value of $25)................. 40

Increase in long-term liability for compensated absences................................... 40

Internal service net income.................................................................................. 525

Required Steps

1. Prepare the reconciliation of total fund balance to net position for governmental activities and for the City ABC, given the provided information in Part 1.
2. Complete the statement of activities reconciliation for the City XYZ in Part 2.