It's for the lease of surgical equipment.

If the contract were signed, what would be the first journal entry entered by the hospital. What would be the final journal entry? Are they the same or are they different? Why? What underlying principal would explain why they would be the same...? What underlying principal would explain why they would be different?

Lease Term: 1st 11 Payments: 12th Payment On: Purchase Price: 36 Months $0.00 $68,742.10 $1,900,000.00 Lease Term: 1st 11 Payments: 12th Payment On: Purchase Price: 36 Months $0.00 $68,742.10 $1,900,000.00