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Fountain Corporation recorded a right-of-use asset for $155,215 as a result of a finance lease on December 31, 2016. Fountains incremental borrowing rate is 9%,
Fountain Corporation recorded a right-of-use asset for $155,215 as a result of a finance lease on December 31, 2016. Fountains incremental borrowing rate is 9%, and the implicit rate of the lessor was not known at the commencement of the lease. Fountain made the first lease payment of $19,886.13 on on December 31, 2016. The lease requires 12 annual payments. The equipment has a useful life of 12 years with no residual value.Prepare Windsor's December 31, 2017, entries. (hint: lease payment and amortization)
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