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Hurricane Company leased an excavator on January 1, 2018. According to the terms of the agreement, Hurricane Company will pay 20.000 TL for 6 years,

  1. Hurricane Company leased an excavator on January 1, 2018. According to the terms of the agreement, Hurricane Company will pay 20.000 TL for 6 years, starting from July 1, 2019. The interest rate of the agreement is 9%. Hurricane Company has the option to purchase this vehicle for 5.000 TL at the end of lease period. The net present value of the future payments is 92.699,71 TL. The useful life is estimated as 10 years. The residual value is estimated as 10.000 TL. Straight-line method of depreciation is utilized. Prepare the lease amortization table and make the journal entries for this lease.

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