The following journal entry,in the books of Lessee Pty Limited,records the lease payment made at 30 June 2012.The actual lease payment,the present value of which was included in the calculation of minimum lease payments at the inception of the lease,is:
30 June 2012 $$\begin{array} { | l | l | r | r | }
\hline \mathrm { Dr } & \text { Executory expense } & 10000 & \
\hline \mathrm { Dr } & \text { Interest expense } & 13000 & \
\hline \mathrm { Dr } & \text { Lease liability } & 87000 & \
\hline \mathrm { Cr } & \text { Cash } & & 110000 \
\hline
\end{array}$$

Question

The following journal entry,in the books of Lessee Pty Limited,records the lease payment made at 30 June 2012.The actual lease payment,the present value of which was included in the calculation of minimum lease payments at the inception of the lease,is:
30 June 2012 $$\begin{array} { | l | l | r | r | } 
\hline \mathrm { Dr } & \text { Executory expense } & 10000 & \
\hline \mathrm { Dr } & \text { Interest expense } & 13000 & \
\hline \mathrm { Dr } & \text { Lease liability } & 87000 & \
\hline \mathrm { Cr } & \text { Cash } & & 110000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of The following journal entry,in the books of Lessee Pty Limited,records the lease payment made at 30 June 2012.The actual lease payment,the present value of which was included in the calculation of minimum lease payments at the inception of the lease,is:
30 June 2012 $$\begin{array} { | l | l | r | r | } 
\hline \mathrm { Dr } & \text { Executory expense } & 10000 & \
\hline \mathrm { Dr } & \text { Interest expense } & 13000 & \
\hline \mathrm { Dr } & \text { Lease liability } & 87000 & \
\hline \mathrm { Cr } & \text { Cash } & & 110000 \
\hline
\end{array}$$

The Following Journal Entry,in the Books of Lessee Pty Limited,records