1. Sun company engaged in leasing a machine for quality control that requires payment of 2000 at the end of each month. The economic life of the machine is 5 years. Sun company normallt is subject to 6% interest rate per year in business transactions. Assume lease period is 54months. Provide the journal entry that must be made on the date the lease contract is signed.

2. Assume lease period is 40 percent. Provide the journal entry that must be made on the date the second monthly payment is made

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