accounts question

A lease agreement for capital equipment requires Granger Transport Lid. to make 10 annual payments of $40,000, with the first payment due on January 2, 2020, the date of the inception of the lease. Required Requirement 1. Journalize the beginning of lease term and first annual payment. (List debits first, then credits. Explanations are not required.) Journal Entry Date Accounts Debit Credit i Required - X 2020 Jan. 2 1 Journalize the following lessee transactions assuming that it is a capital lease 2020 Jan 2 Beginning of lease term and first annual payment. The present value of the nine future lease payments at 10 percent is $230,361. Dec. 31 Amortization of equipment (10 percent). 31 Interest expense on lease liability. 2021 Jan. 2 Second annual lease payment. 2. Assume now that this is an operating lease. Journalize the January 2, 2020, lease payment. Print Done hoose from any list or enter any number in the input fields and then click Check Answer. parts Clear All remaining Type here to search O e