Use this information for the next $4$ questions.

Assume that a capital lease is initiated by a local governmental unit at $1/1/2021.$ The payments will be $$100,000$ per year at the end of each year. Assume that the net present value is $$682,500.$ The implicit rate of interest is $3\%.$

$1.$ Prepare the journal entries for the lease incept on $1/1/2022$ using the following assumptions:

A proprietary fund records the lease

$2.$ Prepare the journal entries for the lease incept on $1/1/2022$ using the following assumptions:

A governmental fund records the lease

$3.$ Prepare the entry at $12/31/2022($end of second year$)$ for the lease payment of principal of $$49,032$ and interest of $$50,968$ using the following assumptions:

A proprietary fund records the lease

$4.$Prepare the entry at $12/31/2022($end of second year$)$ for the lease payment of principal of $$49,032$ and interest of $$50,968$ using the following assumptions:

Prepare the journal entries for the lease incept on $1/1/2022$ using the following assumptions:

A governmental fund records the lease