Assume a Government Reported Other Financing Sources - Proceeds of Bonds

Assume a government reported Other Financing Sources - Proceeds of Bonds in the amount of $1,000,000 in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances. The adjustments necessary to convert to the accrual basis of accounting would result in an increase of $1,000,000 when preparing the reconciliation from the changes in fund balances in that statement to the changes in net position in the governmental funds column in the Statement of Activities.