Assume that Leicester Ltd.leased equipment that was carried at a cost £159,769 to Wentworth Company.The term of the lease is 6 years beginning January 1, 2016, with equal rental payments of £32,000 at the beginning of each year.All executory costs are paid by Wentworth directly to third parties.The fair value of the equipment at the inception of the lease is £159,767.The equipment has a useful life of 6 years with no residual value.The lease has an implicit interest rate of 8%, no bargain purchase option, and no transfer of title.Based on this information, Leicester's January 1, 2016, journal entries at the inception of the lease would include:

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The Answer of Assume that Leicester Ltd.leased equipment that was carried at a cost £159,769 to Wentworth Company.The term of the lease is 6 years beginning January 1, 2016, with equal rental payments of £32,000 at the beginning of each year.All executory costs are paid by Wentworth directly to third parties.The fair value of the equipment at the inception of the lease is £159,767.The equipment has a useful life of 6 years with no residual value.The lease has an implicit interest rate of 8%, no bargain purchase option, and no transfer of title.Based on this information, Leicester's January 1, 2016, journal entries at the inception of the lease would include:

Assume That Leicester Ltd