Reconciliations to yield government-wide financial statements (deferred revenues and compensated absences) 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 $4,500 and Compensated Absences of $3,000 (all numbers in $1,000s) at the beginning of the year. During the year, these accounts increased by $2,500 and $1,500, respectively. What reconciliation entries must the City include in its government-wide financial statements relating to Deferred Revenues and Compensated Absences? Reconciliation Spreadsheet Description Debit Credit Revenues To record reconciliation entry for deferred revenue. Compensated absence expense To record reconciliation entry for compensated absences. o o o

Reconciliations to yield government-wide financial statements (deferred revenues and compensated absences) 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 $4,500 and Compensated Absences of $3,000 (all numbers in $1,000s) at the beginning of the year. During the year, these accounts increased by $2,500 and $1,500, respectively. What reconciliation entries must the City include in its government-wide financial statements relating to Deferred Revenues and Compensated Absences? Reconciliation Spreadsheet Description Debit Credit Revenues To record reconciliation entry for deferred revenue. Compensated absence expense To record reconciliation entry for compensated absences. o o o

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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