Montana''s capital lease, Financial Accounting

Montana Company signs a five-year capital lease with Elway Company for office equipment. The yearly lease payment is $20,000, and the interest rate is 8%.

 

1. Compute the current value of Montana's five-year lease payments.

2.  Prepare the journal entry to record Montana's capital lease at its inception.

 

Posted Date: 3/25/2013 1:43:37 AM | Location : United States







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