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Items 1 through 10 represent the 2017 transactions that Mega City reported as reconciling items on its governmental fund financial statements

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Items 1 through 10 represent the 2017 transactions that Mega City reported as reconciling items on its governmental fund financial statements.
In accordance with GASB 34, basic Financial statements and Management's Discussion and Analysis (MD&A) for State and Local Governments,
a reconciliation must be shown of the items that cause the difference between
(1) the total change of the fund balances that appear on the governmental fund financial statements and
(2) the total change of net positions that are disclosed for governmental activities on the government-wide financial statements.

For each item, indicate whether the item should be added, deducted, or not included in the reconciliation.
Select your answer from the list below. An answer may be selected once, more than once, or not at all.

List

A. Added

D. Deducted

N. Not included

1. Mega City reported $2,000,000 depreciation expenses for general fixed assets

on its G-W financial statements.

2. Mega City issued $5,000,000 of revenue bonds.

3. Mega City's general fund reported $2,000 of property tax revenues as deferred

revenues because the amount is not available to finance current expenditures.

4. Mega City's capital project fund issued $10,000,000 of general obligation bond

to finance the construction of a new citizen center.

5. Mega City reported $10,000 of accrued interest expenses related to the bond in

above on its government-wide financial statements.

6. Mega City's general fund paid $200,000 of salaries to employees who work for the

governmental fund.

7. The state owes Mega City $20,000 for the city's share of the state sales tax

as a result of retail transactions that occurred during 2019. However, this amount

will not be remitted until March of 2020.

8. Mega City's debt service fund repaid $500,000 of 9%, 20-year term bond.

9. Mega City's general fund used $40,000 to acquire police cars.

10. Mega City's Water enterprise billed $20,000 general fund for water usage.