On January 1 of the current year , Stephens Corporation leased machinery from Montgomery Company .The machine originally cost Montgomery $ 263,000. The lease agreement is an operating lease , the terms of which call for five annual payments of $ 35,000 .The first parent is due at the inception of the lease , other four payments are due on January 1 of subsequent years . What journal entry should Stephens make on January 1 of the current year?
On January 1 of the current year , Stephens Corporation leased machinery from Montgomery Company .The machine originally cost Montgomery $ 263,000. The lease agreement is an operating lease , the terms of which call for five annual payments of $ 35,000 .The first parent is due at the inception of the lease , other four payments are due on January 1 of subsequent years . What journal entry should Stephens make on January 1 of the current year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1 of the current year , Stephens Corporation leased machinery from Montgomery Company .The machine originally cost Montgomery $ 263,000. The lease agreement is an operating lease , the terms of which call for five annual payments of $ 35,000 .The first parent is due at the inception of the lease , other four payments are due on January 1 of subsequent years .
What journal entry should Stephens make on January 1 of the current year?
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