Question
The first payment of $9,000 becomes due on the capital lease for Pilates equipment. Of the $9,000 payment, $8,000 is being applied to principal and
The first payment of $9,000 becomes due on the capital lease for Pilates equipment. Of the $9,000 payment, $8,000 is being applied to principal and $1,000 is being applied to interest. Prepare the one journal entry for the lease payment. (1 point)
What is the classification on the Cash Flow Statement? (1 point)
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Step: 1
The journal entry for the capital lease payment would be Debit Interest Expense 1000 Deb...
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
17th Edition
032459237X, 978-0324592375
