On January 1, 2021, a lessee company signed a noncancelable finance lease for equipment. The lessee will make annual payments of $94,000 at the end of each year during the lease term, beginning on December 31, 2021. The lease liability was determined to have a present value of $469,000 (assumed; please do not attempt computations beyond years necessary) at an effective interest rate of 8%. At the end of 2022, one journal entry the lessee makes is:Lease Liability xxxInterest Expense xxx Cash xxx In the above entry, how much should the lessee debit Lease Liability on December 31, 2022? (DO NOT round for any part of the computation.)
On January 1, 2021, a lessee company signed a noncancelable finance lease for equipment. The lessee will make annual payments of $94,000 at the end of each year during the lease term, beginning on December 31, 2021. The lease liability was determined to have a present value of $469,000 (assumed; please do not attempt computations beyond years necessary) at an effective interest rate of 8%. At the end of 2022, one journal entry the lessee makes is:Lease Liability xxxInterest Expense xxx Cash xxx In the above entry, how much should the lessee debit Lease Liability on December 31, 2022? (DO NOT round for any part of the computation.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2021, a lessee company signed a noncancelable finance lease for equipment. The lessee will make annual payments of $94,000 at the end of each year during the lease term, beginning on December 31, 2021. The lease liability was determined to have a present value of $469,000 (assumed; please do not attempt computations beyond years necessary) at an effective interest rate of 8%.
At the end of 2022, one
In the above entry, how much should the lessee debit Lease Liability on December 31, 2022? (DO NOT round for any part of the computation.)
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