The City of Rochester signed a 30-year agreement with East Coast Real Estate, Inc. to lease a newly-constructed building for city services. The city agrees to make an initial payment of $2,600,000 and annual payments of $781,040 for the next 29 years. Using an assumed borrowing rate of 8 percent, the present value of the lease payments is approximately $11,315,200. At the time the lease agreement is signed, the building had an appraised market value of $12 million and an estimated life of 40 years. Provide journal entries the city should make for both the capital projects fund and governmental activities at the government-wide level to record the lease at the date of inception. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)