$\underline{\text{ Transactions: }}$
1. A government Special Revenue Fund leased specialized equipment under a multi-year, noncancelable lease agreement that qualifies as a capital lease. The lease required a down payment of $500 and the present value of the minimum lease payments including the down payment (i.e., the capitalizable cost of the leased asset) was $5,000. The implicit rate of interest on the lease is 10%.
2. The government made the first annual lease payment of $750.
3. The government made the second annual lease payment of $750.

$\underline{\text{Requirement: }}$ Prepare the general journal entries using standard fund-type terminology, identifying the fund or nonfund accounts for which the entry is being prepared. Appropriate abbreviations are acceptable (e.g., GF, SRF, CPF, DSF, GCA, GLTL, OFS, or OFU). If no entry is required, write "No Entry Required" and briefly explain why. Do not include formal entry explanations or dates, but include any important assumptions made and all calculations.

Question

$\underline{\text{  Transactions: }}$ 
1. A government Special Revenue Fund leased specialized equipment under a multi-year, noncancelable lease agreement that qualifies as a capital lease. The lease required a down payment of $500 and the present value of the minimum lease payments including the down payment (i.e., the capitalizable cost of the leased asset) was $5,000. The implicit rate of interest on the lease is 10%.
2. The government made the first annual lease payment of $750.
3. The government made the second annual lease payment of $750.

$\underline{\text{Requirement:   }}$ Prepare the general journal entries using standard fund-type terminology, identifying the fund or nonfund accounts for which the entry is being prepared. Appropriate abbreviations are acceptable (e.g., GF, SRF, CPF, DSF, GCA, GLTL, OFS, or OFU). If no entry is required, write "No Entry Required" and briefly explain why. Do not include formal entry explanations or dates, but include any important assumptions made and all calculations.

Quizplus · Accepted Answer

The Answer of $\underline{\text{  Transactions: }}$ 
1. A government Special Revenue Fund leased specialized equipment under a multi-year, noncancelable lease agreement that qualifies as a capital lease. The lease required a down payment of $500 and the present value of the minimum lease payments including the down payment (i.e., the capitalizable cost of the leased asset) was $5,000. The implicit rate of interest on the lease is 10%.
2. The government made the first annual lease payment of $750.
3. The government made the second annual lease payment of $750.

$\underline{\text{Requirement:   }}$ Prepare the general journal entries using standard fund-type terminology, identifying the fund or nonfund accounts for which the entry is being prepared. Appropriate abbreviations are acceptable (e.g., GF, SRF, CPF, DSF, GCA, GLTL, OFS, or OFU). If no entry is required, write "No Entry Required" and briefly explain why. Do not include formal entry explanations or dates, but include any important assumptions made and all calculations.

Transactions: ‾\underline{\text{ Transactions: }} Transactions: ​ 1 a Government Special Revenue Fund Leased Specialized Equipment Under

$\underline{\text{ Transactions: }}$ 1 a Government Special Revenue Fund Leased Specialized Equipment Under