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Windsor Company leased equipment from Costner Company, beginning on December 31, 2019. The lease term is 4 years and requires equal rental payments of $87,122
Windsor Company leased equipment from Costner Company, beginning on December 31, 2019. The lease term is 4 years and requires equal rental payments of $87,122 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 $320,000, an estimated useful life of 4 years, and no estimated residual value. The appropriate interest rate is 6%. Click here to view factor tables Prepare Windsor's 2019 and 2020 Journal entries, assuming Windsor depreciates similar equipment it owns on a straight-line basis: (Credit account tities are outomaticolly indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal ploces as displayed in the foctar table provided and round final answers to O decimol places, es. 5,275.) (Credit account titles are outomaticaly indented when the amount Is entered. Do not indent manually. For colculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places, es. 5,275.)
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