What is the journey entries for the first payment on july 1

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Question

Crane Limited, a public company following IFRS 16, decided to upgrade the coffee machines in all of its office locations. Crane leased 45 machines from Coffee Tyme Ltd. on July 1, 2017 (to purchase the coffee machines instead would cost Crane $315 per machine, and the machines would have lasted an estimated five years).

The lease calls for semi-annual payments for the next three years, in the amount of $34 per machine. The payments start on July 1, 2017.

At the end of the three-year period, the machines will have to be returned to the lessor. What is the journey entries for the first payment on July 1, 2017?

Reference no: EM132317002

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