Prepare windsor journal entries

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Windsor Company leased equipment from Costner Company, beginning on December 31, 2019. The lease term is 5 years and requires equal rental payments of $64,948 at the beginning of each year of the lease, starting on the commencement date (December 31, 2019). The equipment has a fair value at the commencement date of the lease of $290,000, an estimated useful life of 5 years, and no estimated residual value. The appropriate interest rate is 6%.

Problem 1: Prepare Windsor's 2019 and 2020 journal entries, assuming Windsor depreciates similar equipment it owns on a straight-line basis.

Reference no: EM132907735

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