On January 2, 2012, Austen Company contracted to lease a mainframe computer on a noncancelable basis for
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1. Is this a capital lease or an operating lease? Explain.
2. Assuming that the lease is an operating lease, prepare the journal entries for Austen for 2012.
3. Assuming that the lease is a capital lease, prepare the journal entries for Austen for 2012. Assume the lease payment at the end of 2012 includes interest of $41,479.
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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