Marin enters into an agreement with Traveler nc, to lesse a car on December 31, 2016. The following information relates to this agreement 1. The term of the on-cancelable lease is 3 years with no renewal or bargain purchase optior. The remaining economic life of the car is 3 years, and it is expected to have no residual value at the end of the lease term. 2. The fair value of the car was S11,7 at commencement of the lease. 3. Annual pyments are required to De made on December 31 atthe end c each ear the ease, beginning December 31, 2017. The first payment s to be of an amount of S6,952.00 with each payment increasing br a constant rate of 5? rom the previous payment e the second pa mer 7,200.60 and the third and final payment wil be $7,654.58 Marin incrementsl borrowing rste is 85. The rate impicit in the lesse is unknown Marin uses straight-line depreciation for all similar cars Frepare Harin' journal entries for 2016, 2017, and 2018. (Credit account tities are automatically indented when the amount is entered. Do not indent manually. For calcufation purposes, use 5 decimal places as displayed in the factor table provlded and round final ansver decimal places, e.g. 5,275.25.) Date Account Titles and Fxplanation Credit 12/31/1 To recard Interest expense) (To record amortza on cfthe right.ofuse ass?) To record interest perse) 12/3/18osperistion Expenss To record amortzation of the right-of-ue asse) Marin enters into an agreement with Traveler nc, to lesse a car on December 31, 2016. The following information relates to this agreement 1. The term of the on-cancelable lease is 3 years with no renewal or bargain purchase optior. The remaining economic life of the car is 3 years, and it is expected to have no residual value at the end of the lease term. 2. The fair value of the car was S11,7 at commencement of the lease. 3. Annual pyments are required to De made on December 31 atthe end c each ear the ease, beginning December 31, 2017. The first payment s to be of an amount of S6,952.00 with each payment increasing br a constant rate of 5? rom the previous payment e the second pa mer 7,200.60 and the third and final payment wil be $7,654.58 Marin incrementsl borrowing rste is 85. The rate impicit in the lesse is unknown Marin uses straight-line depreciation for all similar cars Frepare Harin' journal entries for 2016, 2017, and 2018. (Credit account tities are automatically indented when the amount is entered. Do not indent manually. For calcufation purposes, use 5 decimal places as displayed in the factor table provlded and round final ansver decimal places, e.g. 5,275.25.) Date Account Titles and Fxplanation Credit 12/31/1 To recard Interest expense) (To record amortza on cfthe right.ofuse ass?) To record interest perse) 12/3/18osperistion Expenss To record amortzation of the right-of-ue asse)
