for the next 29 years. At a 7 percent discount rate, the present value of the lease payments totals $23 million Upon compietion, the bullding had an appraised value of $13 million and an estimated useful ife of 40 years. Required a Provide the journal entries the city should make in both the capital projects fund general journal and the governmental activities generai journal to record the lease at the date of inception. (if no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in whole dollars, not in millons.) Fund I Governmental Activites Transaction General Journal Debit Credit 1 Record the lease at the date of inception Capital Projects Fund Govemmental Activities b. Which financial statementes) prepared at the end of the first year would show both the asset and the ability related to this capital lease? O Government wide statements of comprehensive income O Government wide statements of net position O Government wide statements of pront or loss O Government wide statements of revenue and expenditure c Would the accounting for the lease change if the lease included a cancellation clause? O ves ONo
for the next 29 years. At a 7 percent discount rate, the present value of the lease payments totals $23 million Upon compietion, the bullding had an appraised value of $13 million and an estimated useful ife of 40 years. Required a Provide the journal entries the city should make in both the capital projects fund general journal and the governmental activities generai journal to record the lease at the date of inception. (if no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in whole dollars, not in millons.) Fund I Governmental Activites Transaction General Journal Debit Credit 1 Record the lease at the date of inception Capital Projects Fund Govemmental Activities b. Which financial statementes) prepared at the end of the first year would show both the asset and the ability related to this capital lease? O Government wide statements of comprehensive income O Government wide statements of net position O Government wide statements of pront or loss O Government wide statements of revenue and expenditure c Would the accounting for the lease change if the lease included a cancellation clause? O ves ONo
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 3P
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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