Oceanside County's fiscal year ends June 30. The county leased equipment during fiscal 2014, as follows:
1. The general fund signed a 4-year lease on July 1, 2013, with payments of $15,000 to be made each June 30.
2. The water department enterprise fund signed a 5-year lease on July 1, 2013, with payments of $10,000 to be made each June 30.
Both leases qualify as capital leases, at an interest rate of 4 percent. When appropriate, the equipment is straight-line depreciated with no residual value.
Required
a. How is each lease reported in the fund statements for fiscal 2014?
b. How is each lease reported in the government-wide statements for fiscal 2014?