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II . Lease agreement ( 1 5 points ) On January 2 , 2 0 1 4 , the Clapton Studios leased six computers for
II Lease agreement points
On January the Clapton Studios leased six computers for use in the engineering department. The lease period is for years and the estimated economic life of the leased property is years. The lease does not contain automatic title transfer or a bargain purchase option. Lease payments are $ per year, payable each December The incremental borrowing rate for Clapton is percent and the implicit interest rate known by Clapton is percent. The company uses straightline depreciation for this type of equipment.
Provide the necessary journal entries to record the transactions for Clapton for the period January through December
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