Question
Beth Corporation recorded a right-of-use asset for $536,565 as a result of an operating lease on December 31, 2019. Beth's incremental borrowing rate is 8%,
Beth Corporation recorded a right-of-use asset for $536,565 as a result of an operating lease on December 31, 2019. Beth's incremental borrowing rate is 8%, and the implicit rate of the lessor is 10% at the commencement of the lease. Beth made the first lease payment of $150,000 on December 31, 2019. The lease requires 4 annual payments, each made at the beginning of each lease year (December 31). The equipment has a useful life of 8 years with no residual value. Beth's fiscal year end is December 31. Prepare Beth's lease related journal entries on December 31, 2021 (round to the nearest dollar; 1 point per entry).
Account | Debit | Credit |
Account | Debit | Credit |
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