Rick Kleckner Corporation recorded a finance lease at $300,000 on January 1, 2012 The interest rate is 12 Kleckner Corporation made the first lease payment of $53,920 on January 1, 2012 The lease requires eight annual payments The equipment has a useful life of 8 years with no residual value Prepar...

Interest Expense 29530 Interest P ...

Rick Kleckner Corporation recorded a finance lease at $300,000 on January 1, 2012. The interest rate is

Question:

Rick Kleckner recorded a finance lease at $300,000 on January 1, 2012. The interest rate is 12%. Kleckner made the first lease payment of $53,920 on January 1, 2012. The lease requires eight annual payments. The equipment has a useful life of 8 years with no residual value. Prepare Kleckner Corporation’s December 31, 2012, 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...