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Purell Corporation enters into a lease with Excel Inc., a lessor, on August 15, 2018...

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Accounting

Purell Corporation enters into a lease with Excel Inc., a lessor, on August 15, 2018 that does not transfer ownership or contain a bargain purchase option, and it is not for specialized equipment. Both Purell and Excel use IAS 17. The lease covers three years of the equipments eight-year useful life, and the present value of the minimum lease payments is less than 90% of the equipments fair value.

Required: 1) Prepare Purells journal entry to record its August 15, 2018 annual lease payment of $31,500. Purell has a November 30th year end.

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