The City of Leonard decides to lease school desks for its school system rather than buy them because the lessor will do all scheduled maintenance. On January 1, 2020, the school system leases 5,000 school desks for four years. After that, they will be returned to the manufacturer. Payment will be $20 per desk per year with payments on January 1, beginning on January 1, 2020. The city does not know how the lessor determined the annual charge. The city has an annual incremental borrowing rate of 8 percent. The present value of an annuity due of $1 at an 8 percent annual rate for four periods is 3.5771. REQ A 1 a. Make the journal entries for the City of Leonard for 2020 and 2021 in preparing government-wide financial statements. b. Make the journal entries for the City of Leonard for 2020 and 2021 in preparing fund financial statements for its governmental funds. Record school's four-year lease of school desks at the present value of the payments. 2 Record the first payment for the leased asset @ $20 per desk. Complete this question by entering your answers in the tabs below. 3 Record the amortization of cost of the leased asset over four years using straight-line method. Required A Required B 4 Record interest for the year as 8 percent of the liability. Make the journal entries for the City of Leonard for 2020 and 2021 in preparing government-wide financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) 5 Record the second payment for the leased asset @ $20 per desk. View transaction list 6 Record the amortization of cost of the leased asset over four years using straight-line method. Journal entry worksheet 7 Record interest for the year as 8 percent of the liability. Record school's four-year lease of school desks at the present value of the payments. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2020 REQ B 1 Record the contract signed that will require four annual payments. Record entry Clear entry View general journal 2 Record the first lease payment. 3 Record the second lease payment.