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On July 1, 2006 Company A enters into a six-year, $190,000 lease of equipment that requires

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Question;On July 1, 2006 Company A enters into a six-year, $190,000 lease of equipment that requires five annual payments beginning July 1, 2006. The lease guarantees the lessor, Corporation B, a $30,000 residual value at lease end.The assumed interest rate is 12%12% tables present value PV Annuity Dueyear 4.63552 3.40183year 5.56743 4.03735year 6.50663 4.60478Which journal entry shows the second lease payment on Company A's books?Choose 1 answera. Lease Liability 41,261.47Cash 41,261.47b. lease liability 37960.79cash 37960.79c. cash 37960.79lease liability 37960.79d. cash 41261.47lease liability 41261.47

 

Paper#44156 | Written in 18-Jul-2015

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