Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
goji.go goji.go
wrote...
Go to Answer
Posts: 5977
Rep: 293 0
9 years ago
A city acquires equipment on January 1, 2013 by means of a capital lease agreement. The agreement calls for paying the leasing company $300,000 in three $100,000 annual payments, starting December 31, 2013. The present value of the three lease payments, using a 6% interest rate, is $267,300. The city will make the lease payments from the General Fund. What journal entry should the city make on January 1, 2013 in the Fund?
      a.   debit expenditures - capital outlay; credit other financing sources, for $300,000
      b.   debit expenditures - capital outlay; credit other financing sources, for $267,300
      c.   debit capital assets; credit capital leases payable, for $300,000
      d.   debit expenditures - capital outlay; credit capital leases payable, for $267,300
Read 264 times
3 Replies
Diesel
Replies
Answer accepted by topic starter
f_zah1f_zah1
wrote...
#1
Top Poster
Posts: 10774
Rep: 1064 3
9 years ago
Sign in or Sign up in seconds to unlock everything for free
1

Related Topics

goji.go Author
wrote...
#2
9 years ago
Thanks so much f_zah1.

You were correct Smiling Face with Open Mouth
Diesel
wrote...
#3
9 years ago
You're very welcome!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1214 People Browsing
 124 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 269
  
 242
  
 2024
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 352
Previous poll results: Where do you get your textbooks?