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Jones Co. signed a three-year lease on January 1, 2020 calling for three payments: $40,000, $30,000, and $20,000 on December 31, 2020, 2021, and 2022,
Jones Co. signed a three-year lease on January 1, 2020 calling for three payments: $40,000, $30,000, and $20,000 on December 31, 2020, 2021, and 2022, respectively. The interest (discount) rate is 6%, yielding a present value of $81,228 for the three lease payments. Jones uses the operating lease method. Identify the following that would be included in the journal entries made on December 31, 2020? Credit to Lease Asset of $25,126. Debit to Lease Liability of $35,126. Debit to Lease Expense of $30,000. Debit to Depreciation Expense of $27,076. Credit to Cash of $40,000. Debit to Interest Expense of $4,874
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