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Oriole Ltd., a public company following IFRS 16, recorded a right-of-use asset and lease liability at $158,550 on May 1, 2020. The interest rate is
Oriole Ltd., a public company following IFRS 16, recorded a right-of-use asset and lease liability at $158,550 on May 1, 2020. The interest rate is 9%. Oriole made the first lease payment of $28,901 on May 1, 2020. The lease requires a total of 7 annual payments. The equipment has a useful life of 7 years with no residual value. Prepare Oriole's December 31, 2020 adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Round answers to 0 decimal places, e.g. 5,275.) Debit Credit Date Account Titles and Explanation Dec. 31 Interest Expense 19267 19267 Lease Liability (To record interest.) Dec. 31 Depreciation Expense 19267 Accumulated Depreciation - Right-of-Use Asset 19267 (To record depreciation expense.)
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