Following is the information concerning operating activity for Annette County. For the year ended June 30, 2017, the net change in total governmental fund balances was $(290,400), and the change in net position of governmental activities was $(397,000). During the year, Annette issued $2,120,000 in general obligation bonds at a premium of 101. The bonds are to be used for a construction project. The county acquired $2,870,000 in capital assets and sold capital assets with a book value of $569,000 for $582,900. At the beginning of the period accrued liabilities were $476,000 and at the end of the period they totaled $506,000. Depreciation on capital assets totaled $607,000. Revenue accrued for the period but not available for use totaled $370,600.

Required

Prepare a reconciliation of the change in governmental fund balance to the change in net position of governmental activities.

ANNETTE COUNTY
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund BalancesGovernmental Funds to the Statement of Activities
For the Year Ended June 30, 2017
Net change in fund balancesgovernmental funds
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures.
Transactions involving capital assets resulted in a gain.
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position.
An increase in accrued liabilities indicates that expenditures recorded in the governmental funds exceed expenses for the current period.
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.
Change in net position of governmental activities