A government entered into a general government capital lease at mid-year. The capitalizable cost of the leased asset was $200,000, including a $30,000 down payment at the inception of the lease
The implicit rate of interest in the lease agreement is 6% and annual payments of $50,000 are due each year during the lease term beginning one year from the inception of the lease. What accounting entities are most likely affected by this transaction?
A. General Fund, Debt Service Fund and General Capital Assets and General Long-Term Liabilities accounts.
B. Capital Projects Fund and General Long-Term Liabilities accounts.
C. General Capital Assets and General Long-Term Liabilities accounts.
D. General Fund, and General Capital Assets and General Long-Term Liabilities accounts.
D
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Explain what will be needed for a law office to become paperless, including all hardware and software
What will be an ideal response?
Subordinated debentures
A) have a lower claim on assets than simple debentures. B) are secured by some physical asset. C) are financial assets held in trust by a third party. D) are the safest form of corporate bonds.