Wondershade Company leased equipment from Saturnetworks on January 1, 2014. Lease Term 3 years Annual Payments...

Wondershade Company leased equipment from Saturnetworks on January 1, 2014.

Lease Term	3 years
Annual Payments	$40,000 on January 1 each year
Life of asset	3 years
Implicit Interest Rate	8%
Incremental Rate	8%
PV, annuity due, 3 periods, 8%	2.7833
PV, ordinary annuity 3 periods, 8%	2.5771

There is no expected residual value.

Prepare a completed amortization table. Prepare appropriate journal entries for Wondershade Company for 2014 and 2015. Assume straight-line depreciation and a December 31 year-end. There should be seven journal entries.

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ekkarill92 answered 1 year ago

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