The following facts pertain to a non-cancelable lease agreement between X leasing co and S company a lessee commencement date may 1, 2020 annual lease payment due at the beginning of each year beginning may 1 2020. was $19,656,69 Bargian purchase option price at end of lease term $7000 lease term 5 year life of equipment 10 years lessors cost $65,000 fair value $93,000 lessors implict rate 6% lessees incremental borrowing rate 6% Prepare the journal entry on the lesseesbooks for 2020 and 2021;
The following facts pertain to a non-cancelable lease agreement between X leasing co and S company a lessee
commencement date may 1, 2020
annual lease payment due at the beginning of each year beginning may 1 2020. was $19,656,69
Bargian purchase option price at end of lease term $7000
lease term 5 year
life of equipment 10 years
lessors cost $65,000
fair value $93,000
lessors implict rate 6%
lessees incremental borrowing rate 6%
Prepare the
i have journal entries done but some things wrong
Dr.right of asset 93000
cr Lease liability 93,000
to record lease
lease liablitiy 19656.69
cr.cash 19656.69
to record te first lease payment
Dr. interest expen AMOUNT i have wrong???
cr. ______I have wrong
2021
Journal entries????
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