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SP-1 (Static) Accounting for Finance Leases LOS-1, S-2 Assume Apple Corporation leases a manufacturing robot for three years. The lease is classified as a finance
SP-1 (Static) Accounting for Finance Leases LOS-1, S-2 Assume Apple Corporation leases a manufacturing robot for three years. The lease is classified as a finance lease and is based on an effective interest rate of 6 percent. The lease requires a $50,000 payment in Year 1, a $30,000 payment in Year 2, and a $10,000 payment in Year 3. Provide the journal entry to initially record the lease asset and lease liability on Apple's balance sheet, and each subsequent year-end journal entry to reduce the value of the lease asset and lease liability over its three-year life. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)
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