Exercise 18-16

The following information is available about items that differ between the governmental funds and the government wide statements. Assume that there are no internal service funds. The schedule of capital assets prepared for the year ended December 31, 2015, includes the following items:

Government Beginning Ending

Activities Balance Additions Retirements Balance

Total Capital Assets

(at gross) $700,000 $50,000 $(25,000) $725,000

Less: Accumulated

Depreciation (170,000) (30,000) 17,500 (182,500)

Net Capital Assets $530,000 $20,000 $ (7,500) $542,500

The bond was issued at the beginning of the year, and the following amortization schedule is available.

Date Interest Paid Cash Paid Premium Bond

Amortization Balance

1/1/2015 $104,213

12/31/2015 6,253 7,000 747 $103,466

The net change in fund balancestotal governmental funds was $1,100,000.

Required:

Prepare the reconciliation of the statement of revenues, expenditures, and changes in fund balances to the statement of activities on a government-wide basis for the year ended December 31, 2015.