New City entered into a capital lease agreement for several new dump trucks to be used in general government activities.Assuming 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 to record the capital lease liability and the corresponding dump truck fixed asset. In addition, the acquisition would also need to be recorded in the Schedule of General Fixed Assets to report the increase in the City's property, plant, and equipment. Finally, the lease liability would need to be reported in the Schedule of General Long-Term Debt Obligations, as it represents a long-term financial obligation of the City.

New City Entered into a Capital Lease Agreement for Several