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Recording Finance Lease Journal Entries - Nonlease and Initial Direct Costs Frontier Inc. enters into an eight - year lease contract to lease equipment with
Recording Finance Lease Journal EntriesNonlease and Initial Direct Costs Frontier Inc. enters into an eightyear lease contract to lease equipment with a useful life of eight years. Annual lease payments are due with the first payment made immediately on January the commencemen of the lease. No residual value is expected or guaranteed for the underlying equipment. Lease payments consist of a fixed lease payment of $b insurance on the equipment of $ and c maintenanc on the equipment of $ Frontier Inc. also paid legal fees of $ related to the execution of the lease or January Prepare Frontier's three journal entries at the commencement of the finance lease to record lease asset and liability, lease payment, and maintenance cost, assuming an implicit interest rate of known by Frontier. Note: Round your answers to the nearest whole dollar. tableDateAccount Name,,DrCr Jan. RightofUse Asset,vLease Liability,CashTo record lease asset and liability.,,, Jan. Lease Liability,CashvTo record cash lease payment,,, Jan. Prepaid Maintenance Expense,CashTo record cash maintenance paymer,,,
Recording Finance Lease Journal EntriesNonlease and Initial Direct Costs
Frontier Inc. enters into an eightyear lease contract to lease equipment with a useful life of eight years. Annual lease payments are due with the first payment made immediately on January the commencemen of the lease. No residual value is expected or guaranteed for the underlying equipment. Lease payments consist of a fixed lease payment of $b insurance on the equipment of $ and c maintenanc on the equipment of $ Frontier Inc. also paid legal fees of $ related to the execution of the lease or January
Prepare Frontier's three journal entries at the commencement of the finance lease to record lease asset and liability, lease payment, and maintenance cost, assuming an implicit interest rate of known by Frontier.
Note: Round your answers to the nearest whole dollar.
tableDateAccount Name,,DrCr Jan. RightofUse Asset,vLease Liability,CashTo record lease asset and liability.,,, Jan. Lease Liability,CashvTo record cash lease payment,,, Jan. Prepaid Maintenance Expense,CashTo record cash maintenance paymer,,,
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