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The City acquired golf course maintenance equipment by entering into a 4-year financing lease. The first lease payment of $50,000 was paid on June 2
The City acquired golf course maintenance equipment by entering into a 4-year financing lease. The first lease payment of $50,000 was paid on June 2 when the equipment was delivered. The remaining lease payments of $50,000 each will occur on the first, second, and third anniversary of the first payment. Assume that the interest rate on the lease is 4 percent. HOW DO I JOURNALIZE THIS TRANSACTION?
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