Using the information from Problem 17-6, illustrate and explain the adjustments necessary to convert to a government-wide statement of activities, assuming all expenditures are for capital assets and other finance sources are the result of issuance of general long-term obligations.

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Debit 110,000 250,000 Credit 110,000 41,600 800,000 Revenues . 586,600 5,000 80,000 Encumbrances Fund Balance Reserved for Encumbrances . .. _. . . . . .. 80,000 10,000 900,000 Estimated Other Financing Sources.' 600,000 15,000 295,000 1,600 1,941,600