Immediately after making its annual $10,000 lease payment on June 30, 2009, the last day of its fiscal year,

Reebank had an unpaid capital lease obligation of $85,000. The interest rate applicable to the lease is 10 percent.

When the $10,000 lease payment due on June 30, 2010 is made, what amount for the governmental activities accounts will include? Show your calculation

Answer rating: 100% (QA)

Solution Computation of the Fellowing debit to Cap... View the full answer