Deseret Finance Company purchased a printing press to lease to Quality Printing Company. The lease was structured so that at the end of the lease period of 15 years, Quality would own the printing press. Lease payments required in this lease were $190,000 (excluding executory costs) per year, payable in advance. The cost of the press to Deseret was $1,589,673, which is also its fair value at the time of the lease.

Note: Use the net method to record lease payment receivables.

Click here to access the PV of an annuity due table to use with this problem.

Hide

1. Give the entry to record the lease transaction on the books of Deseret Finance Company