E$9-5($GCA$/$GLTL Entries$)$ Prepare the entries required in the General Capital Assets and General

Long$-$Term Liabilities accounts for the following transactions.

A city leased fire trucks under a long$-$term capital lease agreement. The capitalizable cost of

the trucks was $$1,400,000.$ The city paid $$200,000$ at the inception of the lease and is to make

annual lease payments of $$350,000$ per year.

The city made the first annual lease payment at the end of the first year of the lease. The

$$350,000$ payment included $$225,000$ interest.

The city incurred claims and judgments associated with general government activities during

the year. Claims of $$450,000$ were paid. The city expects another $$1,200,000$ of losses associ$-$

ated with unsettled claims. These claims are not expected to require payment for some time

to come.