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In: Accounting
Right- to- Debbink Co. leased machinery from Young, Inc. on January 1, 2017. The lease term...
Right- to- Debbink Co. leased machinery from Young, Inc. on January 1, 2017. The lease term was for 8 years, with equal annual rental payments of $5,300 at the beginning of each year. In addition, the lease provides an option to purchase the machinery at the end of the lease term for $2,000, which Debbink is reasonably certain it will exercise as it believes the fair value of the machinery will be at least $6,000. The machinery has a useful life of 10 years and a fair value of $36,000. The implicit rate of the lease is not known to Debbink. Debbink’s incremental borrowing rate is 8%.
Prepare Debbink’s 2017 journal entries. Need to use factor table.
Below are the entries, need numbers.
Right- to- asset
Lease LIability
Lease Liability
Cash
Interest Expense
Lease Liability
Amortization Expense
Right -to- asset
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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