Kemba Corporation has acquired equipment on January 1, 2021 by engaging in a 5-year lease transaction that requires annual lease payments of $ 24,000 beginning January 1, 2021.
Instructions
Prepare the journal entries to record the lease inception at January 1, 2021 assuming:
a) The lease is classified as an operating lease.
b) The lease is classified as a finance lease and the present value of the minimal lease payments has been determined to be $ 100,077.
Correct Answer:
Verified
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