A Government Entered into a General Government Capital Lease at Mid-Year

A government entered into a general government capital lease at mid-year. The capitalizable cost of the leased asset was $200,000, including a $30,000 down payment at the inception of the lease. The implicit rate of interest in the lease agreement is 6% and annual payments of $50,000 are due each year during the lease term beginning one year from the inception of the lease. What accounting entities are most likely affected by this transaction?

A) General Fund, Debt Service Fund and General Capital Assets and General Long-Term Liabilities accounts.
B) Capital Projects Fund and General Long-Term Liabilities accounts.
C) General Capital Assets and General Long-Term Liabilities accounts.
D) General Fund, and General Capital Assets and General Long-Term Liabilities accounts.