(Capital Asset Purchases and Leases) 1. Record the following 20X9 transactions in the Harris County General Fund General Ledger. Assume: a. The county entered into a capital lease for police safety equipment. The capitalizable cost of the equipment was $2,500,000, and the county made a $500,000 down payment at the inception of the lease. The effective interest rate implicit in the lease was 5%, compounded semiannually. b. The county paid its first semiannual lease payment of $180,000. To record semiannual lease payment interest is an Espenditure of $50,000. c. The second semiannual lease payment of $180,000, due the last day of the county's fiscal year, was paid. Expenditures--Interest show how your amount is calculated. d. The county purchased patrol cars costing $128,000. The county paid $40,000 down and signed a 5% note requiring semiannual payment of $30,000e. The county paid the first semiannual payment on the note, $30,000. Expenditure--Interest (88,000 x .05 x .5)----2,200 f. The second semiannual note payment of $30,000, due the last day of the county's fiscal year, was paid. Credit cash for $30,812 2. What amount of capital outlay expenditures should be be reported for the county General Fund for 20X9? 20X9 Capital=$2,500,000 + 128,000=$2,628,000 explain why this mount is correct 3. What amount of debt service expenditures should be reported for the General Fund for 20X9? 20X9 Debt Service= ($180,000 x 2) + ($30,812 x 2) = $421,624 explain why this amount is correct. 4. If the second semiannual payment on the lease and on the note are due 2 months after year end, what amount of capital outlay expenditures should the county report for 20X9? What amount of debt service expenditures should be reported for 20X9? 20X9 Capital Outlay= $2,500,000 + $128,000 = $2,628,000 20X9 Debt Service = $180,000 + $30,812 = $210,812 explain why these amount are correct