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A lease rental payment of $20,000, constituting $12,892 of principal and $7,108 of interest, is made. Which of the following entries are required at the
A lease rental payment of $20,000, constituting $12,892 of principal and $7,108 of interest, is made. Which of the following entries are required at the debt service fund and government-wide level? Option Credits a. 20,000 20,000 b. General Journal Debits Debt Service Fund Expenditures-Principal of Lease 12,892 Obligation Expenditures-Interest on Lease 7,108 Obligation Cash Governmental Activities Lease Obligations Payable 12,892 Expenses-Interest on Leases 7,108 Cash Debt Service Fund and Governmental Activities Lease Obligations Payable 20,000 Cash Debt Service Fund Expenditures-Principal of Lease 12,892 Obligation Expenditures-Interest on Lease 7,108 Obligation Cash Governmental Activities Expenses-Principal of Lease Obligation 12,892 Expenses-Interest on Lease Obligation 7,108 Cash 20,000 20,000 20,000 d. 20,000 20,000 Debt Service Fund Other Financing Uses-Lease Payments Cash Governmental Activities Lease Obligations Payable Expenses-Interest on Lease Obligation Cash 12,892 7,108 20,000
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