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On January 2, 2019, Golden Leasing Company leases equipment to Brick Company with 5 equal payments of P160,000 each, payable beginning January 2, 2019. Brick
On January 2, 2019, Golden Leasing Company leases equipment to Brick Company with 5 equal payments of P160,000 each, payable beginning January 2, 2019. Brick Company agrees to guarantee the P150,000 residual value of the asset at the end of the lease term. The expected value of the residual value is P50,000. Brick's incremental borrowing rate is 10%, however it knows that Golden Leasing's implicit rate is 8%. What journal entry would Brick Company make on January 1,2020 , to record the 2 " lease payment
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