Olden City entered into a capital lease agreement for several new dump trucks to be used in general government activities.The city maintains its books and records in a manner that facilitates the preparation of the fund financial statements.Acquisition of these dump trucks would require entries in which of the following funds and/or schedules?

Question

Quizplus · Accepted Answer

The acquisition of the dump trucks would require entries in the General Fund for the payment of lease payments, in the Schedule of Changes in Capital Assets to record the capitalization of the dump trucks, and in the Schedule of Changes in Long-Term Obligations to record the increase in the city's long-term debt related to the capital lease agreement. Therefore, the correct choice is D, which includes all three funds/schedules.

Olden City Entered into a Capital Lease Agreement for Several