The lease liability is 334642 . the borrowing rate is 8 %. the lease term will be 10 years from the effective date of this agreement. Monthly payments will be made in the amount of 4000 with payments due on the first day of each calandar month.The lessee will pay the lessor 9000 for legal costs incurred to finanlize this lease agreement,this payment will be made on the 1 st day of july 2021. if at the termination date of this lease agreement the lessee wishes to purchase the leased equipment the lessee may do so at a price of $15000. prepare the journal entry lease initiation .

Journal entry Lease initiation at June 1, 2021
	A	B	C
1	Account name	Debit amount	Credit amount
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	chose these options for filling the journal entries in column a
	Column A drop-down options
	Cash
	Right-of-use asset
	Property, plant, and equipment
	Accumulated depreciation
	Legal fees payable
	Lease liability
	Lease expense
	Legal fees expense
	Depreciation expense