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Practice Brief Exercise 21A-2 Sandhill warehouse Corporation recorded a right-of-use asset for $250,000 as a result of a finance lease on December 31, 2016. Sandhill
Practice Brief Exercise 21A-2 Sandhill warehouse Corporation recorded a right-of-use asset for $250,000 as a result of a finance lease on December 31, 2016. Sandhill warehouse's incremental borrowing rate is 696, and the implicit rate of the lessor was not known at the commencement of the lease. Sandhill Warehouse Corporation made the first lease payment of $56,500 on December 31, 2016. The lease requires 5 annual payments. The equipment has a useful life of 5 years with no residual value. Prepare Sandhill Warehouse Corporation's December 31, 2017 adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 12/31/17 To record interest) 12/31/17 (To record amortization expense) Click if you would like to Show Work for this question: Open Show Work
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