Land City leases a fleet of gar-bage trucks. The term of the lease is 10 years, approximately theuseful life of the equipment.Based on a sales price of $800,000 and an interest rate of 6%, thecity agrees to make annual payments of $108,694. Upon the expiration of the lease, the truckswill revert to the city.1.Prepareappropriatejournalentriesinthegeneralfund,thegeneralfixedassetsaccountgroup, and the general long-term debt account group to record the signing of thelease.2.Prepare appropriate journal entries in the same fund and account groups to record thefirst payment on the lease. The city records depreciation on garbage trucks using thestraight-linemethod