Overview Plans Resources Status and follow-up Participants More 2003 pat r online book website Brandy Bottling signs an agreement on January 1, 20x4, to lease office equipment for a 5-year period. The estimated useful life of the office equipment is 8 years. The market value of the office equipment is $235,000. The lease agreement calls for lease payments of $55,040. The first payment is due on December 31, 2004, all subsequent payments are made each December 31 thereafter. The interest rate stated in the lease agreemento 8% The present value of the lease payments is $219,758. At the end of the lease term, the equipment reverts back to the lessor. Termitesults.pdf valuation i 20 Prepare journal entries to record a. the lease agreement on January 1, 2004. b the first lease payment on December 31, 20X4 c. the amortization of the leased asset on December 31, 20x4 Answer: a Jan. 1 Equipment Leasehold Capital Lease Liability b. Dec. 31 C. Interest Expense Capital Lease Liability: Cash MacBook Air DI 80 888 7 FR F3 FA FS DD 9 19 F