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5) Where is the clitoris On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a operating lease. The
5) Where is the clitoris
On January 1, Rogers (lessee) signs a three-year lease for machinery that is accounted for as a operating lease. The lease requires three $18,000 lease payments (the first at the beginning of the lease and the remaining two at December 31 of Year 1 and Year 2) The present value of the three annual lease payments is $51,000, using a 6.003% interest rate. The lease payment schedule follows. Required: 1. Prepare the January 1 journal entry at the start of the lease to record any asset or liability. 2. Prepare the January 1 journal entry to record the first $18,000 cash lease payment. 3. Prepare the December 31 journal entry to record amortization at the end of (a) Year 1, (b) Year 2, and (c) Year 3. 4. Prepare the December 31 journal entry to record the $18,000 cash lease payment at the end of (a) Year 1 and (b) Year 2Step by Step Solution
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