Hughey Co. as lessee records a capital lease of machinery on January 1, 2014. The seven annual lease payments of $700,000 are made at the end of each year. The present value of the lease payments at 10% is $3,408,000. Hughey uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value).
Instructions (Round to the nearest dollar.)
(a) Prepare an amortization table for 2014 and 2015.
(b) Prepare all of Hughey's journal entries for 2014.

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The Answer of Hughey Co. as lessee records a capital lease of machinery on January 1, 2014. The seven annual lease payments of $700,000 are made at the end of each year. The present value of the lease payments at 10% is $3,408,000. Hughey uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value).
Instructions (Round to the nearest dollar.)
(a) Prepare an amortization table for 2014 and 2015.
(b) Prepare all of Hughey's journal entries for 2014.

Hughey Co as Lessee Records a Capital Lease of Machinery on on January