On January "Jordan Co and "Palestine Co sign a lease agreement, that calls for "Jordan Co to lease a Machine to "Palestine Co for years for $ paid at the beginning of each year.
Estimated economic life for the machine is years.
the contract guaranteed residual value of $ Palestine co expects that it is probable that the expected value of the residual value at the end of the lease will be $ The machine reverts to Jordan co at the termination of the lease.
Depreciation used straightline method
implicit interest rate is
Present value of $ for periods at
Present value of annuity for periods at
Write the journal entries recorded on January
tableAccountDrCrDate
Write the journal entry recorded on December
tableAccountDrCrDate
