Mack County has acquired equipment through a noncancelable lease-purchase agreement dated December 31, 2017. This agreement requires no down payment and the following minimum lease payments: December Principal Interest Total 2018 $40,000 $12,000 $52,000 2019 40,000 7,000 47,000 2020 40,000 2,000 42,000 1. What account should be debited for $120,000 in the general fund at inception of the lease if the equipment is a general fixed asset andMack does not use a capital projects fund? 2. What account should be credited for $120,000 in the general fixed assets account group at inception of the lease if the equipment is a general fixed asset? 3. What journal entry is required for $120,000 in the general long-term debt account group at inception of the lease if the lease payments are to be financed with general government resources?
Mack County has acquired equipment through a noncancelable lease-purchase agreement dated December 31, 2017. This agreement requires no down payment and the following minimum lease payments:
December Principal Interest Total
2018 $40,000 $12,000 $52,000
2019 40,000 7,000 47,000
2020 40,000 2,000 42,000
1. What account should be debited for $120,000 in the general fund at inception of the lease if the equipment is a general fixed asset andMack does not use a capital projects fund?
2. What account should be credited for $120,000 in the general fixed assets account group at inception of the lease if the equipment is a general fixed asset?
3. What
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