Wildhorse Ltd., a public company following IFRS 16, recorded a right-of-use asset and lease liability at $133,350 on May 1, 2020. The interest rate is 12%. Wildhorse made the first lease payment of $26,089 on May 1, 2020. The lease requires a total of 7 annual payments. The equipment has a useful life of 7 years with no residual value. Assume that at December 31, 2020, Wildhorse made an adjusting entry to accrue interest expense of $8,581 on the lease.

Prepare Wildhorses May 1, 2021 journal entry to record the second lease payment of $26,089. Assume that no reversing entries are made.

Round answers to 0 decimal places) Prepare a single journal entry

May 1

* No reversing entries were Made