On January 1, 2013, a city entered into the following leases for equipment items. Each of the leases qualifies as a capital lease. Initial payments are on December 31, 2013. An interest rate of 12 percent is viewed as appropriate. No bargain purchase options exist.

                              nnual                        Total                   Present Value

Fund                     Payments               Payments             of Total Payments

General (10-year life)............$3,000.................$30,000..............$19,000

Enterprise (4-year life)............9,000..................36,000...............30,600

a. Prepare journal entries for the year 2013 for both of these leases for government-wide financial statements.

b. Prepare journal entries for the year 2013 for both of these leases for fund financial statements.