On June 1, 2024, First National leased a building. The lease agreement calls for First National to make lease payments of $3,620.40 each month for the next two years, with the first lease payment beginning June 30. The company's normal borrowing rate is 6%. Required: 1. Calculate the present value of the lease payments. (Hint: Use a financial calculator or Excel.) 2. Record the lease on June 1, 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the present value of the lease payments. (Hint: Use a financial calculator or Excel.) (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)
On June 1, 2024, First National leased a building. The lease agreement calls for First National to make lease payments of $3,620.40 each month for the next two years, with the first lease payment beginning June 30. The company's normal borrowing rate is 6%. Required: 1. Calculate the present value of the lease payments. (Hint: Use a financial calculator or Excel.) 2. Record the lease on June 1, 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the present value of the lease payments. (Hint: Use a financial calculator or Excel.) (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On June 1, 2024, First National leased a building. The lease agreement calls for First National to make lease payments of $3,620.40
each month for the next two years, with the first lease payment beginning June 30. The company's normal borrowing rate is 6%.
Required:
1. Calculate the present value of the lease payments. (Hint: Use a financial calculator or Excel.)
2. Record the lease on June 1, 2024.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Calculate the present value of the lease payments. (Hint: Use a financial calculator or Excel.) (Do not round intermediate
calculations. Round your answer to the nearest whole dollar amount.)
Present value of lease payments
Required 1
Required 2
Transcribed Image Text:ces
On June 1, 2024, First National leased a building. The lease agreement calls for First National to make lease payments of $3,620.40
each month for the next two years, with the first lease payment beginning June 30. The company's normal borrowing rate is 6%.
Required:
1. Calculate the present value of the lease payments. (Hint: Use a financial calculator or Excel.)
2. Record the lease on June 1, 2024.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Record the lease on June 1, 2024. (Do not round intermediate calculations. If no entry is required for a particular transaction/event,
select "No Journal Entry Required in the first account field.)
View transaction list
Journal entry worksheet
< 1
Record the lease on June 1, 2024.
Note: Enter debits before credits
Date
June 01, 2024
General Journal
Debit
Credit
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