A Five-Year Lease Is Signed by the City of Wachovia

question 7

Multiple Choice

A five-year lease is signed by the City of Wachovia for equipment with a seven-year life. The asset will be returned to the lessor at the end of the lease. The present value of the lease is $20,000, and annual payments of $5,411.41 are payable beginning on the date the lease is signed. The interest portion of the second payment is $1,604.75. The equipment is to be used in City Hall and was purchased from appropriated funds of the General Fund. What entry should be made for the government-wide financial statements one year from the date the lease is signed?
$$\begin{array} { | l | l | r | r | } \hline \text { A) } & \text { Capital Lease Obligation } & 5,411.41 & \\\hline & \text { Cash } & & 5,411.41 \\\hline \text { B) } & \text { Interest Expense } & 1,604.75 & \\\hline & \text { Capital Lease Obligation } & 3,806.66 & \\\hline & \text { Cash } & & 5,411.41 \\\hline \text { C) } & \text { Expenditures - Interest } & 1,604.75 & \\\hline & \text { Expenditures - Lease Asset } & 3,806.66 & \\\hline & \text { Other Financing Sources - Capital Lease } & & 5,411.41 \\\hline \text { D) } & \text { Expenditures - Interest } & 1,604.75 & \\\hline & \text { Expenditures - Leased Asset } & 3,806.66 & \\\hline & \text { Cash } & & 5,411.41 \\\hline \text { E) } & \text { Equipment } & 5,411.41 & \\\hline & \text { Cash } & & 5,411.41 \\\hline\end{array}$$

• A)Option A
• B)Option B
• C)Option C
• D)Option D
• E)Option E

Describe the processes and impacts of economic integration, privatisation, and market economy transitions.

Comprehend the legal and operational aspects of international business, including licensing, joint ventures, and the operation of special economic zones like maquiladoras.

Recognize the importance of choosing suitable international business strategies and partners.

Understand economic policy concerns discussed by the Organisation for Economic Co-operation and Development (OECD).

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Definitions:

Human Dignity

The inherent value and respect owed to each individual, recognizing their worth and rights.

Core Values

Fundamental beliefs or principles that guide an individual's or organization's actions and decision-making processes.

Caring Confrontation

A corrective action that is taken to support core values, such as truth, trust, and respect, while simultaneously preserving human dignity.

Positive Reinforcement

Occurs when desired behavior is followed by a reward, which increases the probability that the behavior will be repeated.