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VI - Capital lease amortization and journal entries ( 1 0 points ) ey Co . as lessee records a capital lease of machinery on

VI-Capital lease amortization and journal entries (10 points)
ey Co. as lessee records a capital lease of machinery on January 1,2014. The seven annual lease ents of $700,000 are made at the end of each year. The present value of the lease payments at 10% is $3,408,000. Hughey uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value).
Instructions (Round to the nearest dollar.)
(a) Prepare an amortization table for 2014 and 2015.
(b) Prepare all of Hughey's journal entries for 2014.
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(a)
Solution
(b)
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