Prepare the reconciliation of change in total fund balance to change in net assets for governmental activities for the City of Riner, given the following information. Net increase in Gov. Fund Balances $500,000
Expenditures – capital outlay equipment $3,500,000
Expenditure – debt service principal 200,000
Expenditure – Interest 200,000
Other financing source – proceeds from sale of land 120,000
Other financing source – proceeds of bonds 1,000,000
Other financing source – premium on bonds 100,000
Transfers from the General Fund 1,100,000
Transfer to the Debt Service Fund 1,100,000
Revenue property taxes 1,500,000
Increase in compensated absences reported as general long-term liabilities 23,000
Increase in accrued interest reported as general long-term liabilities 12,000

Additional information:

Land sold had a book value of $25,000.
Deferred property taxes were $10,000 at the beginning of the year. Deferred property taxes at the end of the year were $12,000.
Depreciation for the year is $2,000,000