Business, 16.10.2020 14:01 fansofboys

Eastern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Other information:

Lease term 5 years
Annual payments $79,000 on January 1 each year
Life of asset 5 years
Implicit interest rate 7%
PV, annuity due, 5 periods, 7% 4.3872
PV, ordinary annuity, 5 periods, 7% 4,1002

Hi-Tech's cost of the equipment $346,589 There is no expected residual value.

Required:
Prepare appropriate journal entries for Hi-Tech Leasing for 2018 and 2019. Assume a December 31 year-end.

Answers: 2

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Eastern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Other information:...

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