Beaver City Entered into a Long-Term Capital Lease for Some

Beaver city entered into a long-term capital lease for some office equipment.The city maintains its books and records in a manner to facilitate preparation of fund financial statements.What entry should be made in its general fund to record this event?

A) Debit Expenditures; Credit Other financing sources-leases.
B) Debit Equipment; Credit Other financing sources-leases.
C) Debit Equipment; Credit Leases payable.
D) No entry, because this event had no effect on financial resources.

Correct Answer:

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