Question
Rogers Company signs a five-year capital lease with Packer Company for office equipment. The annual year-end lease payment is $10,000, and the interest rate is
Rogers Company signs a five-year capital lease with Packer Company for office equipment. The annual year-end lease payment is $10,000, and the interest rate is 8% |
1. | Complete the below table to calculate the present value of Rogerss five-year lease payments. |
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2. Prepare the journal entry to record Rogerss capital lease at its inception.
3. | Complete a lease payment schedule for the five years of the lease with the following headings. Assume that the beginning balance of the lease liability is the present value of lease payments.
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