On June 1, 2021, Florida National leased a building. The lease agreement calls for Florida National to

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On June 1, 2021, Florida National leased a building. The lease agreement calls for Florida National to make lease payments of $3,618.18 each month for the next two years, with the first lease payment beginning June 30. The company’s normal borrowing rate is 8%.


Required:

1. Calculate the present value of the lease payments. Round to the nearest whole dollar. Use a financial calculator or Excel.

2. Record the lease on June 1, 2021.

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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-1259914898

5th edition

Authors: David Spiceland, Wayne M. Thomas, Don Herrmann

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