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
Date		Cash Payment	Interest Portion (8%)	Principal Portion		Carrying Value of Liability
12/31/19						$25,771
12/31/20		$10,000
12/31/21		10,000
12/31/22		10,000				0

Date	Account Titles	Debit	Credit