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please fast Problem 2 On 1/1/20 a city leases a machine. The term of the lease is 5 years with annual payments of $100,000 due
please fast Problem 2 On 1/1/20 a city leases a machine. The term of the lease is 5 years with annual payments of $100,000 due every 12/31. The fair value of the machine on 1/1/20 is $400,000 and the present value of the lease payments is also $400,000. At the end of the lease the machine has an estimated residual value of $0. The first $100,000 lease payment on 12/31/20 is $10,000 of interest and $90,000 of principal repayment. Assuming this lease qualifies as a Capital lease prepare the necessary 2020 journal entries for; 1. The city's Fund Financial Statements 2. The city's Government Wide Financial Statements Problem 2 On 1/1/20 a city leases a machine. The term of the lease is 5 years with annual payments of $100,000 due every 12/31. The fair value of the machine on 1/1/20 is $400,000 and the present value of the lease payments is also $400,000. At the end of the lease the machine has an estimated residual value of $0. The first $100,000 lease payment on 12/31/20 is $10,000 of interest and $90,000 of principal repayment. Assuming this lease qualifies as a Capital lease prepare the necessary 2020 journal entries for; 1. The city's Fund Financial Statements 2. The city's Government Wide Financial Statements
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