Company A enters into a lease agreement with Company B.The fair value of the asset is $100,000.The present value of the minimum lease payments is $90,000.The yearly payment is $10,000,depreciation amounts to $5,000 and the lease meets the requirement of an operating lease.What is the journal entry at the end of the first year assuming a full 12 months have passed?
A lease is operating therefore only record the payment.

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The Answer of Company A enters into a lease agreement with Company B.The fair value of the asset is $100,000.The present value of the minimum lease payments is $90,000.The yearly payment is $10,000,depreciation amounts to $5,000 and the lease meets the requirement of an operating lease.What is the journal entry at the end of the first year assuming a full 12 months have passed?
A lease is operating therefore only record the payment.

Company a Enters into a Lease Agreement with Company B