Use the information for Lai Corporation from BE20-13. Assume that instead of costing Lai $175,000, the equipment

Question:

Use the information for Lai from BE20-13. Assume that instead of costing Lai $175,000, the equipment was manufactured by Lai at a cost of $137,500 and the equipment's regular selling price is $175,000. Prepare Lai Corporation's January 1, 2014 journal entries at the inception of the lease and the entry at December 31, 2014, to record interest.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...