28.On January 1, 2008, a city government leased the following pieces of equipment. Each lease qual¬ ifies as a capital lease. Initial payments are on December 31, 2008. An interest rate of 12 percent is viewed as appropriate. No bargain purchase options exist.

Annual Total Present Value Fund Payments Payments of Total Payments General (10-year life). $3,000 $30,000 $19,000 Enterprise (4-year life) . 9,000 36,000 30,600

a. Prepare journal entries for the year 2008 for both of these leases for government-wide financial statements.

b. Prepare journal entries for the year 2008 for both ofthese leases for fund-based financial statements.