Cottenec Memorial Golf Course is reported as an Enterprise Fund (EF) of LeCorre City. In 2018, the EF leased professional restaurant equipment based on a 20-year lease agreement with French Cooks, Inc. The City has determined that the present value of the lease payments (at 5%) is $443,000.
Provide entries to:
a. Record the long-term equipment lease.
b. Record a required initial lease payment of $150,000 that must be paid at the time the
equipment is installed.

Question

Cottenec Memorial Golf Course is reported as an Enterprise Fund (EF) of LeCorre City. In 2018, the EF leased professional restaurant equipment based on a 20-year lease agreement with French Cooks, Inc. The City has determined that the present value of the lease payments (at 5%) is $443,000. 
Provide entries to:
a. Record the long-term equipment lease.
b. Record a required initial lease payment of $150,000 that must be paid at the time the
equipment is installed.

Quizplus · Accepted Answer

The Answer of Cottenec Memorial Golf Course is reported as an Enterprise Fund (EF) of LeCorre City. In 2018, the EF leased professional restaurant equipment based on a 20-year lease agreement with French Cooks, Inc. The City has determined that the present value of the lease payments (at 5%) is $443,000. 
Provide entries to:
a. Record the long-term equipment lease.
b. Record a required initial lease payment of $150,000 that must be paid at the time the
equipment is installed.

Cottenec Memorial Golf Course Is Reported as an Enterprise Fund