Washington Financing, Inc. purchased a packing machine to lease to Puyallup Fruits. The lease qualifies as a direct financing lease and requires lease payments of $58,860 per year, payable in advance, over a ten-year period. There is no expected residual value. The fair market value of the packing machine is $330,000--the same amount paid by Washington to purchase the asset. The lease term begins on January 1, 2011.
Provide the journal entries required on Washington's books to

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The Answer of Washington Financing, Inc. purchased a packing machine to lease to Puyallup Fruits. The lease qualifies as a direct financing lease and requires lease payments of $58,860 per year, payable in advance, over a ten-year period. There is no expected residual value. The fair market value of the packing machine is $330,000--the same amount paid by Washington to purchase the asset. The lease term begins on January 1, 2011.
Provide the journal entries required on Washington's books to