Following is the information concerning operating activity for Annette County. For the year ended June 30, the net change in total governmental fund balances was $(290,200), and the change in net position of governmental activities was $201,400. During the year, Annette issued $3,100,000 in general obligation bonds at a premium of 101. The bonds are to be used for a construction project. The county acquired $3,850,000 in capital assets and sold capital assets with a book value of $555,000 for $580,600. At the beginning of the period, accrued liabilities related to long-term debt were $475,000 and at the end of the period, they totaled $504,000. During the period $600,000 of serial bonds were retired. Depreciation on capital assets totaled $613,000. Revenue accrued for the period but not available for use totaled $369,600. Required Prepare a reconciliation of the change in governmental fund balance to the change in net position of governmental activities. (Decreases should be indicated with a minus sign.) > Answer is complete but not entirely correct. ANNETTE COUNTY Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds to the Statement of Activities For the Year Ended June 30, 20XX Net change in fund balances-governmental funds Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. A sale of capital assets resulted in a gain on sale reported in the statement of activities, whereas the governmental funds reported the proceeds from the sale as an other financing source. Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. $ (290,200) 3,309,000 (559,000) (3,211,800) x 680,000 Debt payments use current financial resources of governmental funds, but retiring debt decreases long-term liabilities in the statement of net position. Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. (33,000) Some revenues reported in the statement of activities do not provide current financial resources and are not reported as revenues in governmental funds. 373,600 Change in net position of governmental activities $ 268,600