Kingbird Corporation recorded a right-of-use asset for $289,600 as a result of a finance lease on December 31, 2019. Kingbird's incremental borrowing rate is 14%, and the implicit rate of the lessor was not known at the commencement of the lease. Kingbird made the first lease payment of $54,762 on on December 31, 2019. The lease requires 8 annual payments. The equipment has a useful life of 8 years with no residual value. Prepare Kingbird's December 31, 2020, entries. (Credit account titles are automatically Indented when anmount Is entered. Do not Indent manually. Round answers to0 decimal places e.g. 5,275.) Date Account Titles and Explanatlon Debit Credit December 31, 2020 (To record interest expense) December 31, 2020 (To record amortization of the right-of-use asset)

Kingbird Corporation recorded a right-of-use asset for $289,600 as a result of a finance lease on December 31, 2019. Kingbird's incremental borrowing rate is 14%, and the implicit rate of the lessor was not known at the commencement of the lease. Kingbird made the first lease payment of $54,762 on on December 31, 2019. The lease requires 8 annual payments. The equipment has a useful life of 8 years with no residual value. Prepare Kingbird's December 31, 2020, entries. (Credit account titles are automatically Indented when anmount Is entered. Do not Indent manually. Round answers to0 decimal places e.g. 5,275.) Date Account Titles and Explanatlon Debit Credit December 31, 2020 (To record interest expense) December 31, 2020 (To record amortization of the right-of-use asset)

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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