Capital assets acquired through capital by the General Fund are reported in the General Fund Balance Sheet.

Question

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Under a capital lease, the present value of the rental and other minimum lease payments or the fair value of the leased property and the related liability are recorded in the government-wide statements and proprietary funds. Governmental funds, including the general fund, record an expenditure for the present value of the payments and proprietary funds record and capital asset and related liability when the lease is signed. Under an operating lease, the government does not record the leased asset or a liability for the rental payments. Instead, payments are recorded by the governmental funds as current expenditures.

Capital Assets Acquired Through Capital by the General Fund Are