Question
Hughes Co. as lessee records a finance lease of machinery on January 1, 2020. The five annual lease payments of $87,500 are made at the
Hughes Co. as lessee records a finance lease of machinery on January 1, 2020. The five annual lease payments of $87,500 are made at the beginning of each year. The present value of the lease payments at 6% is $390,697. Hughes uses straight-line depreciation (no salvage value).
(a) Prepare an amortization table for the 5-year life of the lease. (Round to the nearest dollar.)
Amortization Table Lease Liability
Lease payment Interest Principal
2020
2021
2022
2023
2024
(b) Prepare all of the 2020 journal entries related to this lease. (2 points)
| Date | Account Titles | Debit | Credit |
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Measurement Theory In Action
Authors: Kenneth S Shultz, David Whitney, Michael J Zickar
3rd Edition
9780367192181
