A five-year lease is signed by the City of Wachovia for equipment with a seven-year life.The asset will be returned to the lessor at the end of the lease.The present value of the lease is $20,000,and annual payments of $5,411.41 are payable beginning on the date the lease is signed.The interest portion of the second payment is $1,604.75.The equipment is to be used in City Hall and was purchased from appropriated funds of the General Fund.
What entry should be made for the government-wide financial statements one year from the date the lease is signed?

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The Answer of A five-year lease is signed by the City of Wachovia for equipment with a seven-year life.The asset will be returned to the lessor at the end of the lease.The present value of the lease is $20,000,and annual payments of $5,411.41 are payable beginning on the date the lease is signed.The interest portion of the second payment is $1,604.75.The equipment is to be used in City Hall and was purchased from appropriated funds of the General Fund.
What entry should be made for the government-wide financial statements one year from the date the lease is signed?

A Five-Year Lease Is Signed by the City of Wachovia