The City of Clear Lake signed a lease agreement with Mountainside Builders whereby Mountainside will...
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The City of Clear Lake signed a lease agreement with Mountainside Builders whereby Mountainside will construct a new office building for city administrative use and lease it to the City for years. The City has agreed to make an initial payment of $ and annual payments in the same amount for the next years. At a percent discount rate, the present value of the lease payments totals $ million. Upon completion, the building had an appraised value of $ million and an estimated useful life of years. Required a Provide the journal entries the city should make in both the capital projects fund general journal and the governmental activities general journal to record the lease at the date of inception. If no entry is required for a transactionevent select No Journal Entry Required" in the first account field. Enter your answers in whole dollars, not in millions. 
The City of Clear Lake signed a lease agreement with Mountainside Builders whereby Mountainside will construct a new office building for city administrative use and lease it to the City for years. The City has agreed to make an initial payment of $ and annual payments in the same amount for the next years. At a percent discount rate, the present value of the lease payments totals $ million. Upon completion, the building had an appraised value of $ million and an estimated useful life of years.
Required
a Provide the journal entries the city should make in both the capital projects fund general journal and the governmental activities general journal to record the lease at the date of inception. If no entry is required for a transactionevent select No Journal Entry Required" in the first account field. Enter your answers in whole dollars, not in millions.
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