Reconciliations to yield government-wide financial statements (deferred revenues and compensated absences) The City of Willows 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 $1,000 (all numbers in $1,000s) at the beginning of the year. During the year, these accounts increased by $500 and $150, 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