Langley Enterprises leases a semi-trailer truck from Rogers Rental for 10 years on January 1, 2020. Langley agrees to make quarterly payments of $4,000. The first payment is due March 31, 2020. At the end of the lease term, Langley agrees to pay Rogers $2,500. The market value of the truck is expected to be $25,000 at the end of the lease. Langley uses 8% as its discount rate.
What is the entry to record the lease on January 1?

Question

Langley Enterprises leases a semi-trailer truck from Rogers Rental for 10 years on January 1, 2020. Langley agrees to make quarterly payments of $4,000. The first payment is due March 31, 2020. At the end of the lease term, Langley agrees to pay Rogers $2,500. The market value of the truck is expected to be $25,000 at the end of the lease. Langley uses 8% as its discount rate. 
What is the entry to record the lease on January 1?

Quizplus · Accepted Answer

The Answer of Langley Enterprises leases a semi-trailer truck from Rogers Rental for 10 years on January 1, 2020. Langley agrees to make quarterly payments of $4,000. The first payment is due March 31, 2020. At the end of the lease term, Langley agrees to pay Rogers $2,500. The market value of the truck is expected to be $25,000 at the end of the lease. Langley uses 8% as its discount rate. 
What is the entry to record the lease on January 1?

Langley Enterprises Leases a Semi-Trailer Truck from Rogers Rental for 10