If a City Has an Unpaid Capital Lease Obligation at the Beginning

Multiple Choice

If a city has an unpaid capital lease obligation at the beginning of its fiscal year,the journal entry in the debt service fund to record the lease payment during that fiscal year will include:

A) A debit to Capital Lease Obligations Payable.
B) A credit to Expenditures-Principal of Capital Lease Obligation.
C) A debit to Expenditures-Principal of Capital Lease Obligation.
D) A debit to Interest Expense on Capital Leases.