Date Lease Payment Interest Principal Balance lease

$ 8% Reduction $ Obligation $

1.7.2018 100,000

30.6.2019 38,803 8,000 30,803 69,197

30.6.2020 38,803 5,536 33,267 35,930

30.6.2021 38,803 2,875 35,929 0

* Rounding error $1 adjusted against interest. Assume straight-line depreciation with zero ($0) residual value.

Required:

The general journal entry to record the annual lease repayment on 30 June 2019 and the loss of the future benefit of the leased asset is

Group of answer choices

Debit (DR): Lease Liability $30,803, Debit (DR): Interest expense $8,000 and Credit (CR): Cash $38,803 and Debit (DR) Depreciation expense $33,333 and Credit (CR) Accumulated Depreciation Lease asset $33,333

Debit (DR): Cash $38,803 and Credit (CR): Lease Liability $30,803, Credit (CR): Interest expense $8,000 and Debit (DR) Accumulated Depreciation Lease asset $33,333 and Credit (CR) Depreciation expense $33,333.

Debit (DR): Cash $38,803 and Credit (CR): Lease Liability $38,803 and Debit (DR) Accumulated Depreciation Lease asset $33,333 and Credit (CR) Depreciation expense $33,333.

Debit (DR): Cash $8,000 and Credit (CR): Interest expense $8,000 and Debit (DR) Depreciation expense $33,333 and Credit (CR) Accumulated Depreciation Lease asset $33,333.

Debit (DR): Interest expense $8,000 and Credit (CR): Cash $8,000 and Debit (DR) Depreciation expense $33,333 and Credit (CR) Accumulated Depreciation Lease asset $33,333.