. Star City leased a bulldozer for use in activities accounted for in the General Fund. The City paid $30,000 and agreed to pay $30,000 per year for 3 years. The bulldozer has a useful life of six years. The lease qualified as a capital lease. Assuming that the city maintains is books and records in a manner that facilitates the preparation of the government-wide financial statements, the appropriate entry at the date of acquisition would be a. Debit Expenditures $120,000; Credit Cash $30,000 and Other Financing Sources $90,000. b. Debit Expenditures $40,000 and Prepaid Lease $80,000; Credit Cash $30,000 and Other Financing Sources $90,000. c. Debit Equipment $120,000; Credit Cash $30,000 and Lease Payable $90,000. d. Debit Expenditures $120,000; Credit Cash $30,000 and Lease Payable $90,000. 2. Star City leased a bulldozer for use in activities accounted for in the General Fund. The City paid $30,000 and agreed to pay $30,000 per year for 3 years. The bulldozer has a useful life of six years. The lease qualified as a capital lease. Assuming that the city maintains is books and records in a manner that facilitates the preparation of the fund financial statements, the appropriate entry in the General Fund at the date of acquisition would be a. Debit Expenditures $120,000; Credit Cash $30,000 and Other Financing Sources $90,000. b. Debit Expenditures $30,000 and Prepaid Lease $90,000; Credit Cash $30,000 and Other Financing Sources $90,000. c. Debit Equipment $120,000; Credit Cash $30,000 and Other Financing Sources $90,000. d. Debit Expenditures $120,000; Credit Cash $30,000 and Lease Payable $90,000.
1. Star City leased a bulldozer for use in activities accounted for in the General Fund. The City paid $30,000 and agreed to pay $30,000 per year for 3 years. The bulldozer has a useful life of six years. The lease qualified as a capital lease. Assuming that the city maintains is books and records in a manner that facilitates the preparation of the government-wide financial statements, the appropriate entry at the date of acquisition would be
a. Debit Expenditures $120,000; Credit Cash $30,000 and Other Financing Sources $90,000.
b. Debit Expenditures $40,000 and Prepaid Lease $80,000; Credit Cash $30,000 and Other Financing Sources $90,000.
c. Debit Equipment $120,000; Credit Cash $30,000 and Lease Payable $90,000.
d. Debit Expenditures $120,000; Credit Cash $30,000 and Lease Payable $90,000.
2. Star City leased a bulldozer for use in activities accounted for in the General Fund. The City paid $30,000 and agreed to pay $30,000 per year for 3 years. The bulldozer has a useful life of six years. The lease qualified as a capital lease. Assuming that the city maintains is books and records in a manner that facilitates the preparation of the fund financial statements, the appropriate entry in the General Fund at the date of acquisition would be
a. Debit Expenditures $120,000; Credit Cash $30,000 and Other Financing Sources $90,000.
b. Debit Expenditures $30,000 and Prepaid Lease $90,000; Credit Cash $30,000 and Other Financing Sources $90,000.
c. Debit Equipment $120,000; Credit Cash $30,000 and Other Financing Sources $90,000.
d. Debit Expenditures $120,000; Credit Cash $30,000 and Lease Payable $90,000.
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