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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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?
Please show work so I can follow along to
learn. THANK YOU!
Reconciliation Spreadsheet
Description
Debit
Credit
Revenues
To record reconciliation entry for deferred revenue.
Compensated absence expense
To record reconciliation entry for compensated absences.
Transcribed Image Text: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? Please show work so I can follow along to learn. THANK YOU! Reconciliation Spreadsheet Description Debit Credit Revenues To record reconciliation entry for deferred revenue. Compensated absence expense To record reconciliation entry for compensated absences.
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