Question
Help, please! Pear Incorporated began leasing computer servers with eight-year terms on January 1, 2021. The lease has an implicit rate of 6% and requires
Help, please!
Pear Incorporated began leasing computer servers with eight-year terms on January 1, 2021. The lease has an implicit rate of 6% and requires eight equal payments of $32,000. The first is paid on the date the lease is signed and the remaining seven payments are to be paid on December 31 of each year, beginning in 2021. Which of the following will be included in the journal entry that Pear Inc. will make to record the lease payment on December 31, 2021:
Select one:
a. Debit to interest expense for $9,441
b. Debit to interest expense for $10,718
c. Debit to lease liability for $22,559
d. Debit to lease liability for $32,000
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