eBook

Leased Assets

Koffman and Sons signed a four-year lease for a forklift on January 1, 2017. Annual lease payments of $1,326, based on an interest rate of 8%, are to be made every December 31, beginning with December 31, 2017.

PV of Annuity of $1

b. Identify and analyze the effect of the first lease payment on December 31, 2017.

Balance Sheet

Income Statement

Stockholders'

Net

Assets

=

Liabilities

+

Equity

Revenues

Expenses

=

Income

EntryCash

1326

Lease Obligation

fill in the blank 30103e08601cfdd_4 This I where I am stuck

fill in the blank 30103e08601cfdd_5

CashLease ObligationLeased AssetLeased Asset ExpenseRent ExpenseNo EntryNo Entry

fill in the blank 30103e08601cfdd_7

CashInterest ExpenseInterest PayableInterest RevenueLeased AssetNo EntryInterest Expense