Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1 of year 1, kamili company leased a tr

On January 1 of Year 1, Kamili Company leased a truck for a 7-year period under...

90.2K

Verified Solution

Question

Accounting

On January 1 of Year 1, Kamili Company leased a truck for a7-year period under a capital lease and agreed to pay an annuallease payment of $6,000 at the end of each year. The interest rateassociated with this capital lease is 12% compounded annually. OnDecember 31 of Year 1,the first $6,000 payment was made asscheduled. The entry to record the payment of the first $6,000payment on December 31 of Year 1includes

Answer & Explanation Solved by verified expert
3.9 Ratings (669 Votes)
Year 1 Journal entry for Lease Payment Date General Journal Debit Credit December 31 Lease Obligation 271410 Interest Expense 328590 Cash 600000 Lease installment paid in year 1 Working note 1 Calculation of    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

On January 1 of Year 1, Kamili Company leased a truck for a7-year period under a capital lease and agreed to pay an annuallease payment of $6,000 at the end of each year. The interest rateassociated with this capital lease is 12% compounded annually. OnDecember 31 of Year 1,the first $6,000 payment was made asscheduled. The entry to record the payment of the first $6,000payment on December 31 of Year 1includes

Other questions asked by students

Q

2 Two concentric metallic spherical shells are given equal amount of positive charges Then a...

Physics
Q

Write the product as a sum or difference cos 60 cos 40 01 cos120 2...

Basic Math
Q

A company that makes bicycles has determined that a new employee can assemble M(d), where...

Basic Math
Q

Internet tax The Gallup Poll asked 1033 U S adults whether they believed that people...

Statistics
Q

The probability that a randomly selected 1 year old male feral cat will live to...

Statistics
Q

Apr 27 4 24 46 PM Unique ID 1347 Find all angles 0 x 360...

Calculus
Q

21 116 Find the volume of the figure shown A 60 cubic feet B 62...

Calculus
Q

Required informotion The following information applies to the questions displayed below]...

Accounting
Q

Jefferson Print Supplies, Inc., sells laser printers and supplies. Assume Jefferson started the year with...

Accounting
Q

onzalez Company is considering two new projects with the following net cash flows. The companys...

Accounting
Q

1.00 Information for the year 2019 Marketable Securities 20,000.00 Accounts Receivable 60,000.00 Inventory 30,000.00 Number...

Accounting
Q

Your firm spends $5,300 every month on printing and mailing costs, sending statements to customers....

Finance