Granite County Entered the Following Equipment Lease Agreements at the Beginning

Essay

Granite County entered the following equipment lease agreements at the beginning of fiscal 2020:
1) The general fund signed a 4-year lease, with $100,000 paid at signing, and $100,000 due at the end of fiscal 2020, fiscal 2021, and fiscal 2022. The lease had a 3.5% implicit interest rate, and the present value of the payments is $380,163.
2) The water and sewer facility (enterprise fund) signed a 3-year lease, with $100,000 paid at signing, and $100,000 due at the end of fiscal 2020 and 2021. The lease had a 3.5% implicit interest rate, and the present value of the payments is $289,969.
The leased equipment has an estimated life equal to the life of the lease, no residual value. Round all dollar amounts to the nearest dollar.
Required
a. Prepare the journal entries to record lease activities in the general fund and the enterprise fund for fiscal 2020.
b. Prepare the journal entries to record the lease activities in the government-wide statements for fiscal 2020.
c. Identify the reconciliation items for fiscal 2020 in
1) The reconciliation of fund balances of governmental funds to net position of governmental activities.
2) The reconciliation of changes in fund balances of governmental funds to change in net position of governmental activities.
d. Identify the reconciliation items for fiscal 2021 (a year later) in
1) The reconciliation of fund balances of governmental funds to net position of governmental activities.
2) The reconciliation of changes in fund balances of governmental funds to change in net position of governmental activities.