Question
On 30 June 2015, ABC Ltd entered into a 10-year finance lease for the right to use an item of equipment. The fair value of
On 30 June 2015, ABC Ltd entered into a 10-year finance lease for the right to use an item of equipment. The fair value of the equipment at the inception of the lease is $2,286,262. Lease payments are made in advance on the 30 June each year. An extract of the lease repayments schedule is shown below:
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ABC LTD Extract of Lease Payments Schedule
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Required
Based on the Lease Repayment Schedule, prepare the journal entries for ABC Ltd to account for the finance lease payments from 30 June 2015 to 30 June 2017.
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