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dentity the best answer for each of the following problems. Questions 9-12 are based on the following scenario: Laperla County entered into a capital lease

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dentity the best answer for each of the following problems. Questions 9-12 are based on the following scenario: Laperla County entered into a capital lease on June 30, 20X8, for equipment to be used by General Fund departments. The capitalizable cost of the leased asset was $200,000. An initial payment of $20,000 was made at the inception of the lease. The first annual lease payment of $35,000 was due and paid on July 1, 20X9. Assume a 6% implicit rate of interest on the lease. 9. General Fund expenditures in the fiscal year ended December 31, 20X8, would be a capital outlay expenditures of $20,000. b. capital outlay expenditures of $200,000. c. capital outlay expenditures of $200.000 and interest expenditures of $5,400, d. rent expenditures of $20,000 and no capital outlay or debt service expenditures. 10. Laperla County should report General Fund expenditures for the fiscal year ended December 31, 20X9, in the amount of a. rent expenditures of $35,000. b. interest expenditures of $35,000 c. principal retirement expenditures of $35,000. d. interest expenditures of $10,800 and principal retirement expenditures of $24,200. 11. The capital lease transaction will affect Laperla County's fund balance during the fiscal year ended December 31, 20X8, by a. an increase of $20,000. b. an increase of $180,000. c. a decrease of $180,000 d. a decrease of $20,000. 12. The capital lease transaction will affect Laperla County's fund balance during the fiscal year ended December 31, 20X9, by a. $0. b. a decrease of $10,800. c. a decrease of $35,000. d. an increase of $24,200. The following information pertains to questions 13 and 14: A school district Special Revenue Fund's beginning materials inventory was $100,000; its ending materials inventory was $120,000. Materials costing $400,000 were purchased for the fund during the year. Accounts payable for the fund's materials were $17,000 at the beginning of the year and $7,000 at year end. 13. The school district should report expenditures for materials in its Special Revenue Fund of: If the School District Uses Purchases Method Consumption Method $400,000 $400,000 $400,000 $380,000 $410,000 $380,000 $400,000 $420,000

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