Cullumber Ltd., a public company following IFRS, recorded a right-of-use asset and lease liability at $164,400 on May 1, 2023. The interest rate is 9%. Cullumber made the first lease payment of $27,250 on May 1, 2023. The lease requires a total of 8 annual payments. The equipment has a useful life of 8 years with no residual value. Assume that at December 31, 2023, Cullumber made an adjusting entry to accrue interest expense of $8,229 on the lease.

Cullumber Ltd., a public company following IFRS, recorded a right-of-use asset and lease liability at $164,400 on May 1, 2023. The interest rate is 9%. Cullumber made the first lease payment of $27,250 on May 1, 2023. The lease requires a total of 8 annual payments. The equipment has a useful life of 8 years with no residual value. Assume that at December 31, 2023, Cullumber made an adjusting entry to accrue interest expense of $8,229 on the lease.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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