Question

1. Record the following 20X9 transactions in the Percy County General Fund General Ledger. Assume:
a. The county entered into a capital lease for police safety equipment. The capitalizable cost of the equipment was $2,500,000, and the county made a $500,000 down payment at the inception of the lease. The effective interest rate implicit in the lease was 5%, compounded semiannually.
b. The county paid its first semiannual lease payment of $180,000.
c. The second semiannual lease payment of $180,000, due the last day of the county’s fiscal year, was paid.
d. The county purchased patrol cars costing $128,000. The county paid $40,000 down and signed a 5% note requiring semiannual payments of $30,812.
e. The county paid the first semiannual payment on the note, $30,812.
f. The second semiannual note payment of $30,812, due the last day of the county’s fiscal year, was paid.
2. What amount of capital outlay expenditures should be reported for the county General Fund for 20X9?
3. What amount of debt service expenditures should be reported for the General Fund for 20X9?
4. If the second semiannual payments on the lease and on the note are due two months after year end, what amount of capital outlay expenditures should the county report for 20X9?
What amount of debt service expenditures should be reported for 20X9?



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  • CreatedOctober 25, 2014
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