Question
Tractor Co. as lessee records a finance lease of machinery on January 1, 2018. The five annual lease payments of $65,992.08 are made at the
Tractor Co. as lessee records a finance lease of machinery on January 1, 2018. The five annual lease payments of $65,992.08 are made at the beginning of each year. The present value of the lease payments at 5% is $300,000. Hughey uses the effective-interest method of amortization and straight-line depreciation (no residual value).
Prepare all the Journal Entries for 2018 and 2019.
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Managerial Accounting
Authors: John Wild, Ken Shaw
5th edition
978-1259176494, 1259176495, 978-1259347641, 1259347648, 978-0078025600
