Question 6 This is a multiple answer question. On January 1, 2025, Rampart Inc., entered into a lease agreement with ABC Leasing Company to lease a truck for 3 years. The lease is accounted for as a finance lease and $5,000 in lease payments are due at the beginning of the period starting January 1, 2025, and on December 31 of each year thereafter. There is no residual value. The rate implicit in the lease in 8%. On December 31, 2026, what entry will Rampart make when the lease payment is made? The present value of an annuity due at 8% for 3 years is 2.78326. (Round to whole dollars) (Choose all that apply) Question 6 of 25 ill save this response. A. debit interest expense $370 B. debit lease liability $4,630 C. credit cash $5,000 D. debit lease expense $5,000 E.D debit right of use asset $4,630
Question 6
This is a multiple answer question.
On January 1, 2025, Rampart Inc., entered into a lease agreement with ABC Leasing Company to lease a truck for 3 years. The lease is accounted for as a finance lease and $5,000 in lease payments are due at the beginning of the period starting January 1, 2025, and on December 31 of each year thereafter. There is no residual value. The rate implicit in the lease in 8%. On December 31, 2026, what entry will Rampart make when the lease payment is made? The present value of an annuity due at 8% for 3 years is 2.78326. (Round to whole dollars) (Choose all that apply)
Question 6 of 25
ill save this response.
A. debit interest expense $370
B. debit lease liability $4,630
C. credit cash $5,000 D. debit lease expense $5,000
E.D debit right of use asset $4,630
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