Reconciliations to yield government-wide financial statements (deferred revenues and compensated absences) 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 $4,000 and Compensated Absences of $2,500 (all numbers in $1,000s) at the beginning of the year. During the year, these accounts increased by $2,000 and $1,200, respectively. What reconciliation entries must the City include in its government-wide financial statements relating to Deferred Revenues and Compensated Absences?

Reconciliations to yield government-wide financial statements (deferred revenues and compensated absences) 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 $4,000 and Compensated Absences of $2,500 (all numbers in $1,000s) at the beginning of the year. During the year, these accounts increased by $2,000 and $1,200, 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 0 Revenues 0 0 0 0 To record reconciliation entry for deferred revenue. 0 0 0 0 Compensated absence expense Revenues To record reconciliation entry for compensated absences, 0 0