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On January 1, 2022, Oriole Inc. entered into an agreement to lease 20 computers from Drummond Electronics. The terms of the lease agreement require three

On January 1, 2022, Oriole Inc. entered into an agreement to lease 20 computers from Drummond Electronics. The terms of the lease agreement require three annual rental payments of $36,000 (including 10% interest) beginning December 31, 2022. The present value of the three rental payments is $89,525. Oriole considers this a finance lease. Prepare the journal entry to record the lease agreement on the books of Oriole Inc. on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1

enter an account title for the journal entry on January 1

enter a debit amount

enter a credit amount

enter an account title for the journal entry on January 1

enter a debit amount

enter a credit amount

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