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Rode Company leases space from United Corporation. When Rode entered into a financing lease with...

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Accounting

Rode Company leases space from United Corporation. When Rode entered into a financing lease with United, it prepared the following amortization table. The interest rate used was 8%. Rode has made all of its payments exactly on the due date of May 1.

beg bal interest pymt Prin paid end bal
time zero 90,999.93 20471.94 (20,471.94) 70,527.99
Yr 1 5/1/26 70,527.99 5,642.24 20471.94 (14,829.70) 55,698.29
Yr. 2 5/1/27 55,698.29 4,455.86 20471.94 (16,016.08) 39,682.22
Yr 3 5/1/28 39,682.22 3,174.58 20471.94 (17,297.36) 22,384.86
Yr 4 5/1/29 22,384.86 1,790.79 20471.94 (18,681.15) 3,703.70
Yr 5, 5/1/30 3,703.70 296.30 4000 (3,703.70) 0.00

Rode is preparing to close its financial statements for the year-ended December 31, 2027. What amount of interest should it accrue as a current liability related to this lease?

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