Windsor Company leases an automobile with a fair value of $14,845 from John Simon Motors, Inc., on the following terms:

1.		Non-cancelable term of 50 months.
2.		Rental of $310 per month (at the beginning of each month). (The present value at 0.5% per month is $13,753.)
3.		Windsor guarantees a residual value of $1,030 (the present value at 0.5% per month is $803). Windsor expects the probable residual value to be $1,030 at the end of the lease term.
4.		Estimated economic life of the automobile is 60 months.
5.		Windsors incremental borrowing rate is 6% a year (0.5% a month). Simons implicit rate is unknown.

Solve 2nd month lease payment and amortization.

What is the nature of this lease to Windsor? finance The nature of this lease is a/an lease SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT Your answer is correct. [ What is the present value of the lease payments to determine the lease liability? (Round answer to 0 decima Present value of the lease payments 13753 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT Your answer is correct. Based on the original fact pattern, record the lease on Windsor's books at the date of commencement. (Credit Account Titles and Explanation easi Credit Right-of-Use Asset 13753 Lease Liability 13753