! Required information [The following information applies to the questions displayed below.] On January 1 of this year, Google Corporation leased a package of high-speed servers by signing a five-year finance lease. Lease payments of $300,000 are due at the end of each year. Google uses the straight-line method to amortize leased assets and the effective interest rate method to amortize lease liabilities. Assume that the appropriate annual discount rate is 9 percent. Prepare the journal entries to record the reduction of the lease asset and the lease liability on December 31, Year 2. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places. 1 No Transaction a. × Answer is not complete. General Journal Debit Credit Lease liability ☑ 300,000.00 Cash 300,000.00

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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[The following information applies to the questions displayed below.]
On January 1 of this year, Google Corporation leased a package of high-speed servers by
signing a five-year finance lease. Lease payments of $300,000 are due at the end of each
year. Google uses the straight-line method to amortize leased assets and the effective
interest rate method to amortize lease liabilities. Assume that the appropriate annual
discount rate is 9 percent.
Prepare the journal entries to record the reduction of the lease asset and the lease liability on December 31,
Year 2.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first
account field. Round your answers to 2 decimal places.
1
No
Transaction
a.
× Answer is not complete.
General Journal
Debit
Credit
Lease liability
☑
300,000.00
Cash
300,000.00
Transcribed Image Text:! Required information [The following information applies to the questions displayed below.] On January 1 of this year, Google Corporation leased a package of high-speed servers by signing a five-year finance lease. Lease payments of $300,000 are due at the end of each year. Google uses the straight-line method to amortize leased assets and the effective interest rate method to amortize lease liabilities. Assume that the appropriate annual discount rate is 9 percent. Prepare the journal entries to record the reduction of the lease asset and the lease liability on December 31, Year 2. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places. 1 No Transaction a. × Answer is not complete. General Journal Debit Credit Lease liability ☑ 300,000.00 Cash 300,000.00
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