Carter County entered into capital lease to finance an Emergency-911 telecommunications system. The capitalizable cost of the

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Carter County entered into capital lease to finance an Emergency-911 telecommunications system. The capitalizable 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

Debit Credit
A. Expenditures
Lease Payable
Cash $185,000
$160,000
25,000
B. Expenditures
Other Financing Source
Cash $185,000
$160,000
25,000

C. Capital Asset
Lease Payable
Cash $185,000
$160,000
25,000

D. Capital Asset
Other Financing Source
Cash $185,000
$160,000
25,000