Find and record the lease

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Chunky Cheese Pizza has $60.9 million in bonds payable. The bond indenture states that the debt to equity ratio cannot exceed 3.11. Chunky's total assets are $200.9 million, and its liabilities other than the bonds payable are $90.9 million. The company is considering some additional financing through leasing.

Question 1: The company enters a lease agreement requiring lease payments with a present value of $5.9 million. Record the lease. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answer in millions. (i.e., $5,500,000 should be entered as 5.5).)

Reference no: EM132559348

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