1. Record the entry that should be made in the debt service fund for the second lease payment.

2. Record the entry that should be made in governmental activities journal for the second lease payment.

Prepare the entry that should be made in the debt service fund and governmental actlvitles journal to record the second lease payment. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the entry that should be made in the debt service fund for the second lease payment. Note: Enter debits befare crecits. Journal entry worksheet Record the entry that should be made in governmental activities journal for the second lease payment. Note: Enter debits before credits. The City of Bellalre has agreed to acquire a new clty malntenance bullding under a lease agreement. At the Inceptlon of the lease, a payment of $100,000 is to be made; nine annual lease payments, each In the amount of $100,000, are to be made at the end of each year after the Inception of the lease. The total amount to be pald under this lease, therefore, is $1,000,000. The town could borrow this amount for nine years at the annual rate of 4 percent; therefore, the present value of the lease at Inception, Including the Initlal payment, is $843,533. Assume that the falr value of the bullding at the Inception of the lease is $850,000. Prepare the entry that should be made In a capital projects fund at the Inceptlon of the lease. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)