Question
Financing Lease - Practice Download and complete the practice exercise downloadfor a financing lease using the example finance lease as a model. Record a Right
Financing Lease - Practice
Download and complete the practice exercise downloadfor a financing lease using the example finance lease as a model. Record a Right of use asset and corresponding Lease liability of $25,771. Complete the amortization schedule using an interest rate of 8% and provide journal entries including amortization of the Right of use asset over the 3-year lease term.
PRACTICE EXERCISE FINANCING LEASE
Schedule of Lease Liability Amortization |
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Date |
| Cash Payment | Interest Portion (8%) | Principal Portion |
| Carrying Value of Liability | |
12/31/19 |
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| $25,771 | |
12/31/20 |
| $10,000 |
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12/31/21 |
| 10,000 |
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12/31/22 |
| 10,000 |
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| 0 | |
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Date | Account Titles | Debit | Credit |
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