Question

A government's Statement of Revenues, Expenditures, and Changes in Fund Balances reported proceeds of bonds in the amount of $2,000,000. It also reported expenditures for bond principal in the amount of $500,000. The last interest payment was on the last day of the fiscal year. The reconciliation from the governmental funds changes in fund balances to the governmental activities change in Net Position would reflect a(an):

Answer 1

The reconciliation from the governmental funds' changes in fund balances to the governmental activities change in net position would reflect a decrease of 1,500,000 as the payments.

Step-by-step explanation:

The change in net position = Amount of bond proceeds - Amount of bond principal.

The change in net position = $2,000,000 - $500,000 = 1,500,000

There would be a decrease of 1,500,000 as the payments.

The reconciliation from the governmental funds' changes in fund balances to the governmental activities change in net position would reflect a decrease of 1,500,000 as the payments.