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Carter County entered into a capital lease to finance an Emergency-911 telecommunications system. The capitalized cost of the equipment was $185,000. The county made a required down payment of $25,000. The first debt service payment will not be due until the next fiscal year. The entry to record the inception of this lease in the General Fund would be Expenditures.............................................................. Lease Payable...................................................... Cash..................................................................... $185,000 $160,000 25,000 Expenditures.............................................................. Other Financing Source....................................... Cash..................................................................... $185,000 $160,000 25,000 Capital Asset.............................................................. Lease Payable...................................................... Cash..................................................................... $185,000 $160,000 25,000 Capital Asset.............................................................. Other Financing Source....................................... Cash..................................................................... $185,000 $160,000 25,000

User Agentfll
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1 Answer

6 votes

Answer:

The second option

Step-by-step explanation:

Expenditures

Other Financing Source

Cash $185,000

$160,000

25,000

User Bill Brooks
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