You are the new controller for Banana, Inc.. The company CFO has
asked you to develop the appropriate worksheets and then journal
entries to support several lease contracts as applied based on the
new lease regulations. Your accounting group provided you the
following information regarding the lease:
On January 2, 2018, Banana leased equipment, with a fair value
of $675,000, under a capital lease calling for seven annual lease
payments of $110,000 beginning January 2, 2018, and continuing each
December...