Question
In: Accounting
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.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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