Problem 15-3

Debil 400,000 400,000 400,000 a. Memorandum entry only b. General Fund Assets ......... Private Gifts .............. c. Investment in General Fixed Assets ................ Gift Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...... d. Machinery and Equipment ............................... Investment in General Fixed Assets from Private Gifts ......... 400,000 400,000 400,000 Problem 15-3 (LO 4, 7) Journal entries, identify funds. Land City leases a fleet of gar- bage trucks. The term of the lease is 10 years, approximately the useful life of the equipment. Based on a sales price of $800,000 and an interest rate of 6%, the city agrees to make annual payments of $108,694. Upon the expiration of the lease, the trucks will revert to the city. 1. Prepare appropriate journal entries in the general fund, the general fixed assets account group, and the general long-term debt account group to record the signing of the lease. 2. Prepare appropriate journal entries in the same fund and account groups to record the first payment on the lease. The city records depreciation on garbage trucks using the straight-line method. Problem 15-4 (LO 4, 7, 9) Journal entries, statement of revenue expenditures and change in fund balance. On July 1, 2018, the beginning of its fiscal year, the trial bal. ance of the general fund of the city of Wentworth was as follows: Credit Debit 20,000