33. Capital lease amortization and journal entries. Hughey Co. as lessee records a capital lease...
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33. Capital lease amortization and journal entries. Hughey Co. as lessee records a capital lease of machinery on January 1, 2016. The seven annual lease payments of $525,000 are made at the end of each year. The present value of the lease payments at 10% is $2,556,000. Hughey uses the effective-interest method of amortization and straight-line depreciation (no residual value). Instructions (Round to the nearest dollar.) (a) Prepare an amortization table for 2016 and 2017. (b) Prepare all of Hughey's journal entries for 2016 and 2017
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