On July 1, 2020, a county government leases equipment through June 30, 2022. The lease agreement calls for payments as follows: $500,000 due at the lease signing and $600,000 due on July 1, 2021. The lease agreement carries an interest rate of 3.5%. Straight-line depreciation over the life of the lease, with no residual value, is used if appropriate. The county's fiscal year ends June 30.
Required
Prepare the entries to record events related to this lease on July 1, 2020, June 30, 2021, July 1, 2021, and June 30, 2022, assuming that:
a. The lease is reported in an enterprise fund.
b. The lease is reported in the general fund.

Question

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The Answer of On July 1, 2020, a county government leases equipment through June 30, 2022. The lease agreement calls for payments as follows: $500,000 due at the lease signing and $600,000 due on July 1, 2021. The lease agreement carries an interest rate of 3.5%. Straight-line depreciation over the life of the lease, with no residual value, is used if appropriate. The county's fiscal year ends June 30.
Required
Prepare the entries to record events related to this lease on July 1, 2020, June 30, 2021, July 1, 2021, and June 30, 2022, assuming that:
a. The lease is reported in an enterprise fund.
b. The lease is reported in the general fund.

On July 1, 2020, a County Government Leases Equipment Through