On January 1, 2015, a city entered into the following leases for equipment items Each of the leases qualifies as a capital lease Initial payments are on December 31, 2015 An interest rate of 8 percent is viewed as appropriate No bargain purchase options exist Fund Annual Payments Total Payments Present Value of Total Payments General (10 year life) $ 4,500 $ 45,000 $ 31,500 Enterprise (4 year life) 11,600 46,40038,700 a Prepare journal entries for the year 2015 for both of these leases for government wide financial statements (If no entry is required for a transaction event, select No journal entry required in the first account field ) Record the entry for capital lease at the beginning of the year Date General Journal Debit Credit January 01, 2015 Record payment on capital lease at end of first year Date General Journal Debit Credit December 31, 2015 Record depreciation expense Governmental Date General Journal Debit Credit December 31, 2015 Record depreciation expense Business Type Date General Journal Debit Credit December 31, 2015 b Prepare journal entries for the year 2015 for both of these leases for fund financial statements (If no entry is required for a transaction event, select No journal entry required in the first account field ) Record the entry for capital lease at the beginning of the year Date General Journal Debit Credit January 01, 2015 Record payment on capital lease at end of first year Date General Journal Debit Credit December 31, 2015 Record depreciation expense Date General Journal Debit Credit December 31,2015 Record present value of payments Date General Journal Debit Credit December 31, 2015 Record payment at the end of first year on leased truck recorded as capital lease Date General Journal Debit Credit December 31, 2015

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On January 1, 2015, a city entered into the following leases for equipment items. Each of the leases qualifies as a capital lease. Initial payments

On January 1, 2015, a city entered into the following leases for equipment items. Each of the leases qualifies as a capital lease. Initial payments are on December 31, 2015. An interest rate of 8 percent is viewed as appropriate. No bargain purchase options exist.

Fund Annual Payments Total Payments Present Value of Total Payments

General (10-year life) $ 4,500 $ 45,000 $ 31,500

Enterprise (4-year life) 11,600 46,40038,700

a. Prepare journal entries for the year 2015 for both of these leases for government-wide financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the entry for capital lease at the beginning of the year.

Date	General Journal	Debit	Credit
January 01, 2015

Record payment on capital lease at end of first year.

Date	General Journal	Debit	Credit
December 31, 2015

Record depreciation expense-Governmental.

Date	General Journal	Debit	Credit
December 31, 2015

Record depreciation expense-Business Type.

Date	General Journal	Debit	Credit
December 31, 2015

Prepare journal entries for the year 2015 for both of these leases for fund financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the entry for capital lease at the beginning of the year.