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Waterworld Company leased equipment from Costner Company, beginning on December 31,2019 . The lease term is 4 years and requires equal rental payments of $41,933
Waterworld Company leased equipment from Costner Company, beginning on December 31,2019 . The lease term is 4 years and requires equal rental payments of $41,933 at the beginning of each year of the lease, starting on the commencement date (December 31, 2019). The equipment has a fair value at the commencement date of the lease of $150,000, an estimated useful life of 4 years, and no estimated residual value. The appropriate interest rate is 8%. Click here to view factor tables. Prepare Waterworld's 2019 and 2020 journal entries, assuming Waterworld depreciates similar equipment it owns on a straight-line basis. (Credit occount titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimol places as displayed in the factor table provided and round final anowerstn n decimnl n arres oo 5 ?75
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