Crane Corporation, which uses ASPE, enters into a $6-$year lease of equipment on September $1,2023,$ that requires $6$ annual payments of $$19,000$ each, beginning September $1,2023.$ In addition, Crane guarantees the lessor a residual value of $$8,000$ at lease end. The equipment has a useful life of seven years.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE OF $1.$

Your answer is partially correct.

Using $(1)$ tables, $(2)$ a financial calculator, or $(3)$ Excel functions, calculate the amount of the capital lease and prepare Crane's September $1,2023$ journal entry assuming an interest rate of $11\%.($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to $0$ decimal places, e$.$g$.5,275.)$

Account Titles and Explanation

Debit

Credit

Obligations under Lease