Use the information for Lenovo from BE21-6. Assume the direct-financing lease was recorded at a present value of ¥150,000,000. Prepare Lenovo’s December 31, 2015, entry to record interest.

Data From BE21-6

Assume that Lenovo (CHN) leased equipment that was carried at a cost of ¥150,000,000 to Sharon
Swander Company. The term of the lease is 6 years beginning January 1, 2015, with equal rental payments
of ¥30,044,000 at the beginning of each year. All executory costs are paid by Swander directly to third parties.
The fair value of the equipment at the inception of the lease is ¥150,000,000. The equipment has a useful
life of 6 years with no residual value. The lease has an implicit interest rate of 8%, no bargain-purchase
option, and no transfer of title. Prepare Lenovo’s January 1, 2015, journal entries at the inception of the
lease.