McCormick Corporation Ltd , a public company following IFRS, recorded a finance lease at $150,000 on May 1, 2011 The interest rate is 10 McCormick Corporation made the first lease payment of $25,561 on May 1, 2011 The lease requires a total of eight annual payments The equipment has a useful life o...

Interest Expense 8296 Interest ...

McCormick Corporation Ltd., a public company following IFRS, recorded a finance lease at $150,000 on May 1,

Question:

McCormick Ltd., a public company following IFRS, recorded a finance lease at $150,000 on May 1, 2011. The interest rate is 10%. McCormick made the first lease payment of $25,561 on May 1, 2011.
The lease requires a total of eight annual payments. The equipment has a useful life of eight years with no residual value.
Prepare McCormick Corporation’s December 31, 2011 adjusting entries.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...