sunland corporation, which uses ASPE, enters into a 6 year lease of equipment on september 1, 2023, that requires 6 annual payments of $30,000 each, beginning september 1, 2023. In addition, sunland gaurantees the lessor a residual value of $19,000 at lease end. the equipment has a useful life of seven years. Using tables, a financial calculator, or excel functions, calculate the amount of the capital lease and prepare Sunlands september 1, 2023 journal entry assuming an interest rate of 8%.

sunland corporation, which uses ASPE, enters into a 6 year lease of equipment on september 1, 2023, that requires 6 annual payments of $30,000 each, beginning september 1, 2023. In addition, sunland gaurantees the lessor a residual value of $19,000 at lease end. the equipment has a useful life of seven years. Using tables, a financial calculator, or excel functions, calculate the amount of the capital lease and prepare Sunlands september 1, 2023 journal entry assuming an interest rate of 8%.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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