the first two pictures are what is needed for journal entries in the excel in last picture. thank you!!
Learning Objectives In this project, you will record the payment of the capital lease principal and interest. Introduction In a previous project, we recorded bond transactions. In this project, we address related transactions, such as payments of the principal and interest portion of the capital leases. The following email was received from the Comptrolier of the Town of Oakville. Capital Lease Agreement To: Junior Accounting Staff From: Comptroller of the Town of Oakville The town leased an emergency communications system for the police department (a division of Public Safety). The emergency communications system has a value of $100,000. This lease qualifies as a capital lease. This email is document #601. Note: This lease affects the General Fund as well as government-wide assets and liabilities. Record the journal entry in the Excel project file to account for the capital lease agreement Hint: The debit side of this journal entry will be an expenditure and should reflect the correct department, as well as account and fund. The credit side of this entry will be "Other Financing Source Capital Leases", and will use 000 as the department. This entire transaction belongs in the General Fund. When you are finished, your journal entry should look like this: Entry for capital lease Dr. Account #575, Fund #101, Department #420, Amount $100,000 Cr. Account #375. Fund #101. Department #000. Amount $100.000 The following email was received from the Comptroller of the Town of Oakville. Governmental Acct Excel Project 6 1 Governmental Acct Excel Project Government and Not-for-Profit Accounting: Concepts & Practices By Granol, et. al. Capital Lease Payment To: Junior Accounting Staff From: Comptroller of the Town of Oakville The term of the $100.000 lease is 10 years. Based on an Implicit interest rate of 6% and an asset cost of $100,000, annual payments are $13,587 This email is document #602. Record the joumal entry in the Excels project file to account for the capital lease agreement. Hint: The payment on the debit side of the entry must be split up into the appropriate principal and interest portions. Also note that the debit side is an expenditure; thus the appropriate department will also need to be recorded. These transactions are paid using cash in the town's main bank account Entry for capital lease payment Dr. Account #560. Fund #101, Department #420. Amount $7,587 Dr. Account #565. Fund #101. Department #420. Amount $6.000 Cr. Account #101. Fund #101, Department #000. Amount: $13.587 Government-Wide Statements The town recorded amortization of $1,290 of the premium on the bonds that it had issued during the year (see Project 4.) An asset of $100,000 and a long-term lease liability of $100,000 need to be recorded on the government-wide statements related to the lease of the communication system. The lease liability needs to be reduced by $7,587 in the government-wide statements to reflect the payment Posting Post all of the transactions in the general ledger located on the GL worksheet tab in the Excel project file. Project Six Deliverable Upon completion of Project Six, you will deliver the following document: Last Name First Name P6-1 General Journal for June 1 2 3 4 5 Governmental Fund Balance Practice Set Town of Oakville Project Six General Journal Fund Account No Del Det 7 8 9 TO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 45 46 48 49 50 51 52 Learning Objectives In this project, you will record the payment of the capital lease principal and interest. Introduction In a previous project, we recorded bond transactions. In this project, we address related transactions, such as payments of the principal and interest portion of the capital leases. The following email was received from the Comptrolier of the Town of Oakville. Capital Lease Agreement To: Junior Accounting Staff From: Comptroller of the Town of Oakville The town leased an emergency communications system for the police department (a division of Public Safety). The emergency communications system has a value of $100,000. This lease qualifies as a capital lease. This email is document #601. Note: This lease affects the General Fund as well as government-wide assets and liabilities. Record the journal entry in the Excel project file to account for the capital lease agreement Hint: The debit side of this journal entry will be an expenditure and should reflect the correct department, as well as account and fund. The credit side of this entry will be "Other Financing Source Capital Leases", and will use 000 as the department. This entire transaction belongs in the General Fund. When you are finished, your journal entry should look like this: Entry for capital lease Dr. Account #575, Fund #101, Department #420, Amount $100,000 Cr. Account #375. Fund #101. Department #000. Amount $100.000 The following email was received from the Comptroller of the Town of Oakville. Governmental Acct Excel Project 6 1 Governmental Acct Excel Project Government and Not-for-Profit Accounting: Concepts & Practices By Granol, et. al. Capital Lease Payment To: Junior Accounting Staff From: Comptroller of the Town of Oakville The term of the $100.000 lease is 10 years. Based on an Implicit interest rate of 6% and an asset cost of $100,000, annual payments are $13,587 This email is document #602. Record the joumal entry in the Excels project file to account for the capital lease agreement. Hint: The payment on the debit side of the entry must be split up into the appropriate principal and interest portions. Also note that the debit side is an expenditure; thus the appropriate department will also need to be recorded. These transactions are paid using cash in the town's main bank account Entry for capital lease payment Dr. Account #560. Fund #101, Department #420. Amount $7,587 Dr. Account #565. Fund #101. Department #420. Amount $6.000 Cr. Account #101. Fund #101, Department #000. Amount: $13.587 Government-Wide Statements The town recorded amortization of $1,290 of the premium on the bonds that it had issued during the year (see Project 4.) An asset of $100,000 and a long-term lease liability of $100,000 need to be recorded on the government-wide statements related to the lease of the communication system. The lease liability needs to be reduced by $7,587 in the government-wide statements to reflect the payment Posting Post all of the transactions in the general ledger located on the GL worksheet tab in the Excel project file. Project Six Deliverable Upon completion of Project Six, you will deliver the following document: Last Name First Name P6-1 General Journal for June 1 2 3 4 5 Governmental Fund Balance Practice Set Town of Oakville Project Six General Journal Fund Account No Del Det 7 8 9 TO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 45 46 48 49 50 51 52
