ABC Inc. leased a drilling equipment form a regional oil services company. The oil company purchased the drilling equipment from an international drilling equipment manufacturer at a cost of590,078 SR. The following information is given:

What is the Entry for the lease (Lessee side)

Given these information

Lease term : 3 years

Payment frequency: semiannual (at the end of the periods)

Economic life of the asset Three years

Payment amount: 120,000 SR

Rate (lessors and the lowest rate) 12%

Lease Receivable 590.078

Cash 590,078

Leased equipment 590,078

Lease payable 590,078

Leased equipment 590,078

Cash 590,078

Lease Receivable 590.078

Lease Payable 590,078