Hoof & Tail Ltd enters into a non-cancellable lease agreement with Equine Industries to lease some equipment under the following conditions: The interest rate implicit in the lease is 11 per cent and the fair value of the asset at the inception of the lease is $37 031.What are the journal entries to record the lease,the payment at lease inception and the first lease payment in the books of the lessee (rounded to the nearest dollar)?
E) None of the given answers.

Question

Hoof & Tail Ltd enters into a non-cancellable lease agreement with Equine Industries to lease some equipment under the following conditions:  The interest rate implicit in the lease is 11 per cent and the fair value of the asset at the inception of the lease is $37 031.What are the journal entries to record the lease,the payment at lease inception and the first lease payment in the books of the lessee (rounded to the nearest dollar)?
E) None of the given answers.

Quizplus · Accepted Answer

The Answer of Hoof & Tail Ltd enters into a non-cancellable lease agreement with Equine Industries to lease some equipment under the following conditions:  The interest rate implicit in the lease is 11 per cent and the fair value of the asset at the inception of the lease is $37 031.What are the journal entries to record the lease,the payment at lease inception and the first lease payment in the books of the lessee (rounded to the nearest dollar)?
E) None of the given answers.

Hoof & Tail Ltd Enters into a Non-Cancellable Lease Agreement